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

Tax Appeal / First Tier Tribunal, Final Determination on the Papers

Legal Issues

1. 1 Whether HMRC reasonably considered that funds deposited in UK and Isle of Man bank accounts 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

HMRC reasonably concluded that the Appellant was UK resident and that substantial deposits into his UK and Isle of Man accounts represented undeclared trading income and interest. The Appellant failed to provide credible or detailed evidence to rebut HMRC's inferences or to demonstrate that the assessments were overstated. The assessments and penalties were made in accordance with statutory requirements, and the Appellant's conduct justified the application of extended time limits and penalties.

Court Disposition

Appeal dismissed. Assessments and penalties upheld in the 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.