JOHN SHARP v Revenue & Customs (HIGH INCOME CHILD BENEFIT CHARGE - discovery assessments in respect of HICBC liability) [2023] UKFTT 746 (TC) (01 September 2023)

JOHN SHARP v Revenue & Customs (HIGH INCOME CHILD BENEFIT CHARGE - discovery assessments in respect of HICBC liability) [2023] UKFTT 746 (TC) (01 September 2023)

Mr Sharp was liable to HICBC for the relevant years and failed to notify HMRC as required by s7 TMA 1970. The retrospective amendment to s29 TMA 1970 by FA 2022 applied, making the discovery assessments valid. Penalties were properly imposed under Schedule 41 FA 2008, as Mr Sharp did not have a reasonable excuse for his failure to notify. Ignorance of the law was not objectively reasonable in his circumstances, particularly as he had previously declared HICBC in earlier and later years. Article 7 ECHR was not engaged for the tax liability or penalties imposed.

Citation
[2023] UKFTT 746
Parties
Appellant: John Sharp; Respondents: The Commissioners for His Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
01 September 2023
Procedural Posture
Tax Appeal / First Tier Tribunal (tax Chamber) Judgment
Outcome
Appeal dismissed
Legal Topics
High Income Child Benefit Charge, Discovery Assessments, Penalties for Failure to Notify, Retrospective Legislation, Reasonable Excuse, Article 6 ECHR, Article 7 ECHR
Tax Law Human Rights Law High Income Child Benefit Charge Discovery Assessments Penalties for Failure to Notify Retrospective Legislation Reasonable Excuse Article 6 ECHR +1 more

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Parties

John Sharp

Appellant

The Commissioners for His Majesty’s Revenue and Customs

Respondents

Procedural Posture

Tax Appeal / First Tier Tribunal (tax Chamber) Judgment

Legal Issues

  1. 1 Whether discovery assessments for HICBC liability and penalties were validly raised under s29 TMA 1970 as amended by FA 2022
  2. 2 Whether penalties for failure to notify liability to HICBC are criminal for purposes of Article 6 ECHR
  3. 3 Whether Article 7 ECHR is engaged regarding retrospective criminal liabilities

Ratio Decidendi

Mr Sharp was liable to HICBC for the relevant years and failed to notify HMRC as required by s7 TMA 1970. The retrospective amendment to s29 TMA 1970 by FA 2022 applied, making the discovery assessments valid. Penalties were properly imposed under Schedule 41 FA 2008, as Mr Sharp did not have a reasonable excuse for his failure to notify. Ignorance of the law was not objectively reasonable in his circumstances, particularly as he had previously declared HICBC in earlier and later years. Article 7 ECHR was not engaged for the tax liability or penalties imposed.

Court Disposition

Appeal dismissed

Orders

  • Mr Sharp is liable to HICBC in the amounts assessed for 2014/15 to 2017/18.
  • Mr Sharp is liable to penalties for failure to notify liability to HICBC for those years.