Farrow v Revenue & Customs (INCOME TAX/CORPORATION TAX : Sub-contractors in the construction industry) [2019] UKFTT 200 (TC) (19 March 2019)

Farrow v Revenue & Customs (INCOME TAX/CORPORATION TAX : Sub-contractors in the construction industry) [2019] UKFTT 200 (TC) (19 March 2019)

HMRC failed to discharge the burden of proof that the appellant lacked a good faith belief that payments to service companies were outside the scope of CIS; therefore, the deliberate inaccuracy was not attributable to the appellant.

Source-derived case information.

Citation
[2019] UKFTT 200 (TC)
Parties
Appellant: Neil Anthony Farrow; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
19 March 2019
Procedural Posture
Appeal / Final Judgment
Outcome
Appeal allowed
Legal Topics
Income Tax, Corporation Tax, Construction Industry Scheme, Penalties for Inaccurate Returns, Personal Liability Notice
Tax Law Income Tax Corporation Tax Construction Industry Scheme Penalties for Inaccurate Returns Personal Liability Notice

Source-derived case record

Summary, issues, holding and outcome

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Parties

Neil Anthony Farrow

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Appeal / Final Judgment

Legal Issues

  1. 1 Whether the inaccuracy in CIS returns was deliberate
  2. 2 Whether the deliberate inaccuracy was attributable to the appellant

Ratio Decidendi

HMRC failed to discharge the burden of proof that the appellant lacked a good faith belief that payments to service companies were outside the scope of CIS; therefore, the deliberate inaccuracy was not attributable to the appellant.

Court Disposition

Appeal allowed

Orders

  • Personal Liability Notice set aside