Ouerradi v The Commissioners for Revenue & Customs [2009] UKFTT 339 (TC) (02 December 2009)

Ouerradi v The Commissioners for Revenue & Customs [2009] UKFTT 339 (TC) (02 December 2009)

The appeal was dismissed because the appellant failed to discharge the burden of proof to show the correct amount of tax due. HMRC acted reasonably in determining the gross profit percentage and issuing the amendments and assessments based on best judgment in the absence of supporting records. The statutory conditions for discovery assessments under s.29 TMA were satisfied, including negligent conduct and the timing of the officer's awareness of insufficiency.

Citation
[2009] UKFTT 339 (TC)
Parties
Appellant: Mr A Ouerradi; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
02 December 2009
Procedural Posture
Appeal / Final Judgment
Outcome
Appeal dismissed
Legal Topics
Income Tax, Corporation Tax, Self Assessment, Closure Notice, Discovery Assessment, Burden of Proof
Tax Law Income Tax Corporation Tax Self Assessment Closure Notice Discovery Assessment Burden of Proof

Case Brief

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Parties

Mr A Ouerradi

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Appeal / Final Judgment

Legal Issues

  1. 1 Whether HMRC's amendments and assessments to the appellant's self-assessment tax returns for 2003/04, 2004/05, and 2005/06 were valid under the Taxes Management Act 1970
  2. 2 Whether the appellant discharged the burden of proof to show the correct amount of tax due
  3. 3 Whether HMRC acted reasonably in determining the gross profit percentage and issuing assessments

Ratio Decidendi

The appeal was dismissed because the appellant failed to discharge the burden of proof to show the correct amount of tax due. HMRC acted reasonably in determining the gross profit percentage and issuing the amendments and assessments based on best judgment in the absence of supporting records. The statutory conditions for discovery assessments under s.29 TMA were satisfied, including negligent conduct and the timing of the officer's awareness of insufficiency.

Court Disposition

Appeal dismissed