Budi v Revenue & Customs [2011] UKFTT 776 (TC) (09 November 2011)

Budi v Revenue & Customs [2011] UKFTT 776 (TC) (09 November 2011)

The taxpayer failed to discharge the burden of proof to show HMRC's assessments should not stand; HMRC's use of bank records was a fair and reasonable method given the lack of proper records.

Citation
[2011] UKFTT 776 (TC)
Parties
Appellant: Moosaji Budi; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
09 November 2011
Procedural Posture
Tax Appeal / Final Judgment
Outcome
Appeal dismissed
Legal Topics
Income Tax, Corporation Tax, Self Assessment, Penalties, Surcharges, Record Keeping, Best Judgment Assessment
Tax Law Income Tax Corporation Tax Self Assessment Penalties Surcharges Record Keeping Best Judgment Assessment

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Parties

Moosaji Budi

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Tax Appeal / Final Judgment

Legal Issues

  1. 1 Whether HMRC's best judgment assessments should stand given poor record-keeping
  2. 2 Whether the methodology used by HMRC to determine profits was fair and reasonable

Ratio Decidendi

The taxpayer failed to discharge the burden of proof to show HMRC's assessments should not stand; HMRC's use of bank records was a fair and reasonable method given the lack of proper records.

Court Disposition

Appeal dismissed

Orders

  • Assessments, penalties, and surcharges to stand subject to parties agreeing figures using HMRC methodology
  • Liberty to apply to Tribunal for determination of figures if parties cannot agree