Bubb v Revenue and Customs (INCOME TAX/CORPORATION TAX : Appeal) [2016] UKFTT 216 (TC) (29 March 2016)

Bubb v Revenue and Customs (INCOME TAX/CORPORATION TAX : Appeal) [2016] UKFTT 216 (TC) (29 March 2016)

HMRC failed to establish that the errors in the appellant’s 2009-10 and 2010-11 tax returns (other than the omission of State pension income) were caused by carelessness; credible evidence showed system-related submission errors. Therefore, the discovery assessments were not validly made under s 29 TMA, as the statutory requirements were not met.

Citation
[2016] UKFTT 216
Parties
Appellant: Thomas Bubb; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
29 March 2016
Procedural Posture
Income Tax/corporation Tax Appeal / First Tier Tribunal (tax Chamber) Decision
Outcome
Appeals allowed against discovery assessments for 2009-10 and 2010-11; surcharges for 2008-09 to be remitted by HMRC.
Legal Topics
Discovery Assessments, Carelessness Under S 29(4) TMA, Online Tax Return Submission Errors, Surcharges for Late Payment, Validity of Assessments, Self Assessment Finality
Tax Law Discovery Assessments Carelessness Under S 29(4) TMA Online Tax Return Submission Errors Surcharges for Late Payment Validity of Assessments Self Assessment Finality

Case Brief

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Parties

Thomas Bubb

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Income Tax/corporation Tax Appeal / First Tier Tribunal (tax Chamber) Decision

Legal Issues

  1. 1 Whether discovery assessments under s 29 TMA for 2009-10 and 2010-11 were validly made
  2. 2 Whether the appellant was careless within s 29(4) TMA
  3. 3 Whether errors in tax returns were attributable to online submission difficulties or taxpayer carelessness

Ratio Decidendi

HMRC failed to establish that the errors in the appellant’s 2009-10 and 2010-11 tax returns (other than the omission of State pension income) were caused by carelessness; credible evidence showed system-related submission errors. Therefore, the discovery assessments were not validly made under s 29 TMA, as the statutory requirements were not met.

Court Disposition

Appeals allowed against discovery assessments for 2009-10 and 2010-11; surcharges for 2008-09 to be remitted by HMRC.

Orders

  • Discovery assessments for 2009-10 and 2010-11 set aside as not validly made under s 29 TMA.
  • No finding made on surcharges for 2008-09 on the understanding HMRC will remit them in full.