Robson v Revenue And Customs (DISCOVERY ASSESSMENTS - EIS - whether taxpayer responsible for actions of fraudulent agent) [2023] UKFTT 226 (TC) (02 March 2023)

Robson v Revenue And Customs (DISCOVERY ASSESSMENTS - EIS - whether taxpayer responsible for actions of fraudulent agent) [2023] UKFTT 226 (TC) (02 March 2023)

The appellant did not authorise the agent to submit self-assessment tax returns or make EIS claims; he acted reasonably and diligently, and there was no knowledge or connivance on his part. The agent's actions were fraudulent, not merely careless. Therefore, the statutory requirements for a valid discovery assessment under s29 TMA 1970 were not met, and the assessments are invalid.

Citation
[2023] UKFTT 226
Parties
Appellant: Robert Robson; Respondents: The Commissioners for His Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
02 March 2023
Procedural Posture
Tax Appeal / First Tier Tribunal (tax Chamber) Judgment
Outcome
Appeal allowed
Legal Topics
Discovery Assessments, Enterprise Investment Scheme (eis), Agency and Authorisation, Fraud by Agent, Carelessness in Tax Returns
Tax Law Discovery Assessments Enterprise Investment Scheme (eis) Agency and Authorisation Fraud by Agent Carelessness in Tax Returns

Case Brief

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Parties

Robert Robson

Appellant

The Commissioners for His Majesty’s Revenue and Customs

Respondents

Procedural Posture

Tax Appeal / First Tier Tribunal (tax Chamber) Judgment

Legal Issues

  1. 1 Whether the taxpayer is responsible for the actions of a fraudulent agent in submitting false tax returns and EIS claims
  2. 2 Whether the discovery assessments under s29 TMA 1970 were validly made
  3. 3 Whether the taxpayer or agent acted carelessly or with knowledge/connivance

Ratio Decidendi

The appellant did not authorise the agent to submit self-assessment tax returns or make EIS claims; he acted reasonably and diligently, and there was no knowledge or connivance on his part. The agent's actions were fraudulent, not merely careless. Therefore, the statutory requirements for a valid discovery assessment under s29 TMA 1970 were not met, and the assessments are invalid.

Court Disposition

Appeal allowed

Orders

  • Discovery assessments for 2015/16 and 2016/17 quashed; HMRC assessments set aside.