Rangos v Revenue & Customs [2012] UKFTT 198 (TC) (19 March 2012)

Rangos v Revenue & Customs [2012] UKFTT 198 (TC) (19 March 2012)

The Tribunal found that the appellant was a shadow director and thus an employee of TT and TO, received untaxed remuneration, and was aware of the companies' failure to deduct tax. However, the Tribunal accepted that HMRC's assessment was excessive and that legitimate business expenses were included in the calculation. The Tribunal adopted the appellant's accountant's lower calculation, applied a further deduction for business costs, and allowed a deduction for sums repaid to the Insolvency Service, reducing the taxable amount to £324,600 plus interest.

Citation
[2012] UKFTT 198
Parties
Appellant: Mr Michael Rangos; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
19 March 2012
Procedural Posture
Tax Appeal / First Tier Tribunal (tax), Final Decision
Outcome
Appeal allowed in part
Legal Topics
PAYE Regulations, Income Tax, Shadow Directorship, Untaxed Remuneration, Self Assessment, Company Liquidation
Tax Law Employment Law PAYE Regulations Income Tax Shadow Directorship Untaxed Remuneration Self Assessment Company Liquidation

Case Brief

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Parties

Mr Michael Rangos

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Tax Appeal / First Tier Tribunal (tax), Final Decision

Legal Issues

  1. 1 Whether the appellant was a shadow director and thus an employee of TT and TO
  2. 2 Whether the appellant received untaxed remuneration from TT and TO
  3. 3 Whether HMRC's assessment of untaxed remuneration was accurate and justified

Ratio Decidendi

The Tribunal found that the appellant was a shadow director and thus an employee of TT and TO, received untaxed remuneration, and was aware of the companies' failure to deduct tax. However, the Tribunal accepted that HMRC's assessment was excessive and that legitimate business expenses were included in the calculation. The Tribunal adopted the appellant's accountant's lower calculation, applied a further deduction for business costs, and allowed a deduction for sums repaid to the Insolvency Service, reducing the taxable amount to £324,600 plus interest.

Court Disposition

Appeal allowed in part

Orders

  • The amount taxable is reduced to £324,600 plus interest on the tax payable.