Smart v Revenue and Customs (NCOME TAX - whether the appellant was liable to income tax on sums payable by overseas entities that are taxable) [2025] UKFTT 701 (TC) (12 June 2025)

Smart v Revenue and Customs (NCOME TAX - whether the appellant was liable to income tax on sums payable by overseas entities that are taxable) [2025] UKFTT 701 (TC) (12 June 2025)

The appellant was liable to income tax on the relevant JCP amounts because he was either the person receiving or entitled to the profits under the statutory provisions. The evidence did not support a finding of fraudulent misrepresentation or that the appellant was not entitled to the sums. The tribunal had no jurisdiction to apply rescission in the circumstances.

Citation
[2025] UKFTT 701 (TC)
Parties
Appellant: Mr Simon Smart; Respondents: The Commissioners for His Majesty's Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
12 June 2025
Procedural Posture
Income Tax Appeal / First Tier Tribunal (tax) Final Judgment
Outcome
Appeal dismissed
Legal Topics
Income Tax, Foreign Income, Taxation of Overseas Entities, Entitlement to Income, Tax Assessments, Rescission, Fraudulent Misrepresentation
Tax Law Income Tax Foreign Income Taxation of Overseas Entities Entitlement to Income Tax Assessments Rescission Fraudulent Misrepresentation

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Parties

Mr Simon Smart

Appellant

The Commissioners for His Majesty's Revenue and Customs

Respondents

Procedural Posture

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

Legal Issues

  1. 1 Whether the appellant was liable to income tax on sums payable by overseas entities under s 402 and ss 268 to 271 of the Income Tax (Trading and Other Income) Act 2005
  2. 2 Whether the appellant 'received' and/or was 'entitled to' the relevant sums for the purposes of s 385 ITTOIA
  3. 3 Whether the tribunal could determine the appellant's tax position as if the equitable remedy of rescission applied due to alleged fraudulent misrepresentation

Ratio Decidendi

The appellant was liable to income tax on the relevant JCP amounts because he was either the person receiving or entitled to the profits under the statutory provisions. The evidence did not support a finding of fraudulent misrepresentation or that the appellant was not entitled to the sums. The tribunal had no jurisdiction to apply rescission in the circumstances.

Court Disposition

Appeal dismissed

Orders

  • The assessments and closure notice issued by HMRC for the tax years 2015/16, 2016/17, and 2017/18 are upheld.