Trachtenberg v Revenue and Customs (INCOME TAX - accessing pension fund via indirect loans) [2024] UKFTT 376 (TC) (09 May 2024)

Trachtenberg v Revenue and Customs (INCOME TAX - accessing pension fund via indirect loans) [2024] UKFTT 376 (TC) (09 May 2024)

The Tribunal found that s29 TMA 1970 applies to unauthorised payment charges and surcharges under s208 and s209 FA 2004, that Mr Trachtenberg deliberately submitted inaccurate tax returns to conceal the receipt of unauthorised payments from his pension scheme, and that there are no grounds to discharge the surcharge as his conduct was intentional and contrary to the statutory purpose of the pensions regime.

Citation
[2024] UKFTT 376 (TC)
Parties
Appellant: Larry Trachtenberg; Respondents: The Commissioners for His Majesty's Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
09 May 2024
Procedural Posture
Appeal Against Income Tax Assessments and Surcharge Under S29 TMA 1970 and S209 FA 2004 / First Tier Tribunal (tax Chamber) Judgment
Outcome
Appeal dismissed
Legal Topics
Income Tax Assessments, Pension Scheme Unauthorised Payments, Self Assessment Regime, Deliberate Behaviour and Extended Time Limits, Discharge of Unauthorised Payment Surcharge
Tax Law Pensions Law Income Tax Assessments Pension Scheme Unauthorised Payments Self Assessment Regime Deliberate Behaviour and Extended Time Limits Discharge of Unauthorised Payment Surcharge

Case Brief

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Parties

Larry Trachtenberg

Appellant

The Commissioners for His Majesty's Revenue and Customs

Respondents

Procedural Posture

Appeal Against Income Tax Assessments and Surcharge Under S29 TMA 1970 and S209 FA 2004 / First Tier Tribunal (tax Chamber) Judgment

Legal Issues

  1. 1 Whether s29 TMA 1970 can be used to recover amounts chargeable to tax under s208 and s209 FA 2004
  2. 2 Whether deliberate behaviour was established such that the extended time limits of s36(1A) TMA 1970 and the provisions of s29(4) TMA 1970 apply
  3. 3 Whether it is just and reasonable in all the circumstances to remove the surcharge under s268 FA 2004

Ratio Decidendi

The Tribunal found that s29 TMA 1970 applies to unauthorised payment charges and surcharges under s208 and s209 FA 2004, that Mr Trachtenberg deliberately submitted inaccurate tax returns to conceal the receipt of unauthorised payments from his pension scheme, and that there are no grounds to discharge the surcharge as his conduct was intentional and contrary to the statutory purpose of the pensions regime.

Court Disposition

Appeal dismissed

Orders

  • Assessments under s29 TMA 1970 for the tax years ended 5 April 2007 and 5 April 2010 upheld
  • Unauthorised payment surcharge under s209 FA 2004 not discharged