Stanley v Revenue & Customs [2011] UKFTT 169 (TC) (14 March 2011)

Stanley v Revenue & Customs [2011] UKFTT 169 (TC) (14 March 2011)

The tribunal found that HMRC had made valid discoveries of unassessed income for all relevant years. The applicable law was the original s 36(1) TMA 1970, requiring only negligent (not deliberate) conduct for extended time limits. Mr Stanley's failure to notify chargeability was negligent. The assessments were made to the best of HMRC's judgment, and Mr Stanley did not provide sufficient evidence to displace them. All assessments were confirmed and the appeal dismissed.

Citation
[2011] UKFTT 169 (TC)
Parties
Appellant: David Stanley; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
14 March 2011
Procedural Posture
Tax Appeal / First Tier Tribunal (tax), Substantive Decision
Outcome
Appeal dismissed
Legal Topics
Income Tax, Discovery Assessments, Time Limits for Assessment, Negligent Conduct, Self Assessment Regime, Transitional Provisions
Tax Law Income Tax Discovery Assessments Time Limits for Assessment Negligent Conduct Self Assessment Regime Transitional Provisions

Case Brief

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Parties

David Stanley

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Tax Appeal / First Tier Tribunal (tax), Substantive Decision

Legal Issues

  1. 1 Whether HMRC made a valid discovery under s 29 TMA 1970
  2. 2 Whether assessments for earlier years were within the relevant time limits
  3. 3 Whether Mr Stanley's conduct was negligent or deliberate under s 36 TMA 1970

Ratio Decidendi

The tribunal found that HMRC had made valid discoveries of unassessed income for all relevant years. The applicable law was the original s 36(1) TMA 1970, requiring only negligent (not deliberate) conduct for extended time limits. Mr Stanley's failure to notify chargeability was negligent. The assessments were made to the best of HMRC's judgment, and Mr Stanley did not provide sufficient evidence to displace them. All assessments were confirmed and the appeal dismissed.

Court Disposition

Appeal dismissed

Orders

  • All assessments for 1990-91 to 2004-05 confirmed in the amounts assessed by HMRC
  • Assessments for 2003-04 and 2004-05 confirmed in the amended amounts notified on 26 May 2010