Njoku v Revenue & Customs [2010] UKFTT 553 (TC) (05 November 2010)

Njoku v Revenue & Customs [2010] UKFTT 553 (TC) (05 November 2010)

The Tribunal found that the Appellant omitted profits from property sales, rental income, and property management income from his tax returns, failed to provide evidence to rebut the assessments, and that the Commissioners’ discovery assessments and closure notices were reasonable and within statutory limits. Adjustments were ordered to property management income and trading income to account for more reasonable estimates and allowable deductions such as stamp duty land tax.

Citation
[2010] UKFTT 553 (TC)
Parties
Appellant: Mr B Njoku; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
05 November 2010
Procedural Posture
Tax Appeal / First Tier Tribunal (tax Chamber) Substantive Decision
Outcome
Appeal dismissed subject to adjustments
Legal Topics
Income Tax, Corporation Tax, Discovery Assessment, Self Assessment, Closure Notices, Property Income, Rental Income, Property Management Income, Negligence in Tax Returns
Tax Law Income Tax Corporation Tax Discovery Assessment Self Assessment Closure Notices Property Income Rental Income +2 more

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Parties

Mr B Njoku

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Tax Appeal / First Tier Tribunal (tax Chamber) Substantive Decision

Legal Issues

  1. 1 Whether profits from property sales were omitted from declared profits on tax returns
  2. 2 Whether rental income from owned properties was omitted from tax returns
  3. 3 Whether income from property management services was omitted from declared profits

Ratio Decidendi

The Tribunal found that the Appellant omitted profits from property sales, rental income, and property management income from his tax returns, failed to provide evidence to rebut the assessments, and that the Commissioners’ discovery assessments and closure notices were reasonable and within statutory limits. Adjustments were ordered to property management income and trading income to account for more reasonable estimates and allowable deductions such as stamp duty land tax.

Court Disposition

Appeal dismissed subject to adjustments

Orders

  • Adjust property management income to £4,200 per annum for the relevant years
  • Trading income calculations to be adjusted to account for stamp duty land tax or equivalent on property sales