Yip v Revenue and Customs (INCOME TAX AND NATIONAL INSURANCE CONTRIBUTIONS) [2024] UKFTT 434 (TC) (23 May 2024)
The Tribunal found that the assessment to tax was insufficient as the £250,000 payment was more likely than not taxable income for consultancy or management services, but HMRC failed to prove on the balance of probabilities that the insufficiency was brought about deliberately by Mr Yip; therefore, the discovery assessment and penalty assessment were invalid due to time limits.
- Citation
- [2024] UKFTT 434
- Parties
- Appellant: Chee Whye Yip; Respondents: The Commissioners for His Majesty's Revenue and Customs
- Jurisdiction
- United Kingdom
- Judgment Date
- 23 May 2024
- Procedural Posture
- Tax Appeal / Final Judgment
- Outcome
- Appeal allowed
- Legal Topics
- Income Tax, National Insurance Contributions, Discovery Assessment, Penalties, Time Limits
Case Brief
Summary, issues, holding and outcome
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Parties
Chee Whye Yip
Appellant
The Commissioners for His Majesty's Revenue and Customs
Respondents
Procedural Posture
Tax Appeal / Final Judgment
Legal Issues
- 1 Whether the discovery assessment under section 29 of the Taxes Management Act 1970 was valid
- 2 Whether the assessment to tax was or has become insufficient
- 3 Whether the insufficiency was brought about deliberately
Ratio Decidendi
The Tribunal found that the assessment to tax was insufficient as the £250,000 payment was more likely than not taxable income for consultancy or management services, but HMRC failed to prove on the balance of probabilities that the insufficiency was brought about deliberately by Mr Yip; therefore, the discovery assessment and penalty assessment were invalid due to time limits.
Court Disposition
Appeal allowed
Orders
- Discovery assessment and penalty assessment set aside
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