Ho v Revenue & Customs (INCOME TAX - self-assessment) [2019] UKFTT 343 (TC) (31 May 2019)

Ho v Revenue & Customs (INCOME TAX - self-assessment) [2019] UKFTT 343 (TC) (31 May 2019)

The Tribunal found that Mr Ho had deliberately suppressed sales, as evidenced by his own admissions to his accountants and corroborated by contemporaneous records and correspondence. The Tribunal accepted HMRC's methodology and calculations as reasonable and made to best judgment in the absence of reliable records from Mr Ho. The statutory conditions for discovery assessments and penalties were met, and the appellant failed to provide credible evidence to displace the assessments. The appeal was dismissed in full.

Citation
[2019] UKFTT 343 (TC)
Parties
Appellant: Stephen Yuen Kwan Ho; Respondents: The Commissioners for Her Majesty's Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
31 May 2019
Procedural Posture
Income Tax Self Assessment Appeal / First Tier Tribunal (tax) Final Judgment
Outcome
Appeal dismissed
Legal Topics
Income Tax, Self Assessment, Discovery Assessments, Penalties, Suppression of Sales, Burden of Proof, Presumption of Continuity
Tax Law Income Tax Self Assessment Discovery Assessments Penalties Suppression of Sales Burden of Proof Presumption of Continuity

Case Brief

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Parties

Stephen Yuen Kwan Ho

Appellant

The Commissioners for Her Majesty's Revenue & Customs

Respondents

Procedural Posture

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

Legal Issues

  1. 1 Whether sales were suppressed by the appellant
  2. 2 Whether HMRC's discovery assessments and closure notices are valid
  3. 3 Whether penalties for negligent and deliberate conduct are justified

Ratio Decidendi

The Tribunal found that Mr Ho had deliberately suppressed sales, as evidenced by his own admissions to his accountants and corroborated by contemporaneous records and correspondence. The Tribunal accepted HMRC's methodology and calculations as reasonable and made to best judgment in the absence of reliable records from Mr Ho. The statutory conditions for discovery assessments and penalties were met, and the appellant failed to provide credible evidence to displace the assessments. The appeal was dismissed in full.

Court Disposition

Appeal dismissed

Orders

  • Closure notice for 2010-11 and discovery assessments for 2006-07 to 2009-10 and 2011-12 upheld
  • Penalty determinations and assessments for 2006-07 to 2011-12 confirmed