Mayet v Revenue and Customs (INCOME TAX - discovery assessments - did HMRC reasonably consider that funds deposited in private bank account held in the UK and Isle of Man were undeclared income from trade - has Appellant failed to declare foreign income - are assessments made in accordance to statutory requirements - has Appellant evidenced that reasonable conclusion to be wrong - does behaviour justify longer assessment time limits - PENALTIES - behaviour justifying assessments also justifying penalties) [2025] UKFTT 52 (TC) (16 January 2025)

Parties

Procedural Posture

Income Tax Appeal / First Tier Tribunal (tax Chamber) Final Determination on Papers

Legal Issues

1. 1 Whether HMRC reasonably considered that funds deposited in private bank accounts held in the UK and Isle of Man were undeclared income from trade
2. 2 Whether the Appellant failed to declare foreign income
3. 3 Whether the assessments were made in accordance with statutory requirements

Ratio Decidendi

The Tribunal found that HMRC reasonably concluded, based on available evidence and the Appellant's failure to provide satisfactory alternative explanations, that the deposits into UK and Isle of Man accounts were undeclared trading income and interest. The Appellant was UK resident for the relevant years, failed to declare foreign income, and did not discharge the burden of proving the assessments were overstated. The behaviour was deliberate, justifying extended assessment periods and penalties, all of which were upheld.

Court Disposition

Appeal dismissed. Assessments and penalties upheld in revised amounts.

Orders

• Assessments for tax years 1999/2000 to 2015/2016 upheld in the revised sums set out in the judgment.
• Penalties for the same years upheld in the revised sums set out in the judgment.