Smith v Revenue & Customs [2013] UKFTT 368 (TC) (27 June 2013)

Smith v Revenue & Customs [2013] UKFTT 368 (TC) (27 June 2013)

The Tribunal held that the information available to HMRC before 31 January 2003 did not clearly alert the notional officer to the insufficiency of tax arising from the scheme. The white space disclosure lacked a detailed technical explanation, did not indicate a contrary legal position, and did not identify the scheme as tax avoidance. Therefore, HMRC was entitled to raise a discovery assessment under s 29 TMA 1970.

Citation
[2013] UKFTT 368
Parties
Appellant: Mr Robert Smith; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
27 June 2013
Procedural Posture
Income Tax Appeal / Final Judgment at First Tier Tribunal (tax)
Outcome
Appeal dismissed
Legal Topics
Discovery Assessment, Self Assessment, Capital Losses, Tax Avoidance Schemes
Tax Law Discovery Assessment Self Assessment Capital Losses Tax Avoidance Schemes

Case Brief

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Parties

Mr Robert Smith

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Income Tax Appeal / Final Judgment at First Tier Tribunal (tax)

Legal Issues

  1. 1 Whether HMRC's discovery assessment under s 29 TMA 1970 for the tax year 2000-01 was validly made
  2. 2 Whether the information available to HMRC before 31 January 2003 precluded a discovery assessment

Ratio Decidendi

The Tribunal held that the information available to HMRC before 31 January 2003 did not clearly alert the notional officer to the insufficiency of tax arising from the scheme. The white space disclosure lacked a detailed technical explanation, did not indicate a contrary legal position, and did not identify the scheme as tax avoidance. Therefore, HMRC was entitled to raise a discovery assessment under s 29 TMA 1970.

Court Disposition

Appeal dismissed

Orders

  • The discovery assessment raised by HMRC is upheld.
  • No further relief is granted to the appellant.