Turner v Revenue & Customs (INCOME TAX - discovery assessments) [2020] UKFTT 512 (TC) (30 December 2020)

Turner v Revenue & Customs (INCOME TAX - discovery assessments) [2020] UKFTT 512 (TC) (30 December 2020)

The discovery assessments were valid and in time, including for 2009-2010 due to the appellant's carelessness. However, the appellant's evidence, particularly as provided to the NES unit, supported lower taxable profits than HMRC assessed. The Tribunal accepted most of the appellant's figures, with adjustments for wages and parcel income, and directed HMRC to reduce the assessments accordingly.

Citation
[2020] UKFTT 512 (TC)
Parties
Appellant: Mr Mark Turner; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
30 December 2020
Procedural Posture
Income Tax Appeal (discovery Assessments) / First Tier Tribunal (tax Chamber) Substantive Decision
Outcome
Appeal allowed in part; assessments reduced to reflect revised profit figures.
Legal Topics
Income Tax, Discovery Assessments, Burden of Proof, Carelessness, Record Keeping
Tax Law Income Tax Discovery Assessments Burden of Proof Carelessness Record Keeping

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Parties

Mr Mark Turner

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

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

Legal Issues

  1. 1 Whether the discovery assessments for 2009-2010, 2010-2011, and 2011-2012 were valid and in time
  2. 2 Whether the appellant displaced the assessments by proving a more likely amount of taxable profit

Ratio Decidendi

The discovery assessments were valid and in time, including for 2009-2010 due to the appellant's carelessness. However, the appellant's evidence, particularly as provided to the NES unit, supported lower taxable profits than HMRC assessed. The Tribunal accepted most of the appellant's figures, with adjustments for wages and parcel income, and directed HMRC to reduce the assessments accordingly.

Court Disposition

Appeal allowed in part; assessments reduced to reflect revised profit figures.

Orders

  • HMRC to adjust the assessments for 2009-2010, 2010-2011, and 2011-2012 to reflect taxable profits of £14,946, £16,579, and £7,458 respectively.