Madden v Revenue & Customs (INCOME TAX/CORPORATION TAX : Assessment/self-assessment) [2018] UKFTT 414 (TC) (26 July 2018)

Madden v Revenue & Customs (INCOME TAX/CORPORATION TAX : Assessment/self-assessment) [2018] UKFTT 414 (TC) (26 July 2018)

The Tribunal found that HMRC had discharged the burden of proof for the discovery assessments and penalties, given the appellant's admissions, lack of cooperation, and failure to provide supporting records. The assessments and penalties were based on reasonable estimates and statutory criteria. The appellant's evidence was unsubstantiated and weakened by his absence for cross-examination. The penalty reductions for disclosure were sufficient. The appeal was dismissed and the assessments and penalties stand good.

Citation
[2018] UKFTT 414
Parties
Appellant: Denis Madden; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
26 July 2018
Procedural Posture
Income Tax Self Assessment Appeal / First Tier Tribunal (tax) Substantive Decision
Outcome
Appeal dismissed
Legal Topics
Income Tax, Self Assessment, Tax Fraud, Discovery Assessments, Penalty Determinations, Time Limits for Assessment, Onus of Proof
Tax Law Income Tax Self Assessment Tax Fraud Discovery Assessments Penalty Determinations Time Limits for Assessment Onus of Proof

Case Brief

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Parties

Denis Madden

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Income Tax Self Assessment Appeal / First Tier Tribunal (tax) Substantive Decision

Legal Issues

  1. 1 Whether HMRC's discovery assessments and penalty determinations for the years 2003-04 to 2013-14 are valid and stand good
  2. 2 Whether the conduct was 'negligent' or 'deliberate' under the relevant statutory provisions
  3. 3 Whether the penalty reductions for disclosure were sufficient

Ratio Decidendi

The Tribunal found that HMRC had discharged the burden of proof for the discovery assessments and penalties, given the appellant's admissions, lack of cooperation, and failure to provide supporting records. The assessments and penalties were based on reasonable estimates and statutory criteria. The appellant's evidence was unsubstantiated and weakened by his absence for cross-examination. The penalty reductions for disclosure were sufficient. The appeal was dismissed and the assessments and penalties stand good.

Court Disposition

Appeal dismissed

Orders

  • All discovery assessments, closure notices, and penalty determinations/assessments for the years 2003-04 to 2013-14 stand good as issued and/or reviewed.