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 returns (other than omission of State pension) were caused by carelessness; credible evidence showed system-related submission errors. Therefore, discovery assessments under s 29 TMA were not validly made, as the statutory condition of carelessness was not met for the assessed losses.

Citation
[2016] UKFTT 216 (TC)
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
Appeal allowed
Legal Topics
Income Tax, Discovery Assessments, Carelessness Under S 29 TMA, Self Assessment, Surcharges for Late Payment
Tax Law Income Tax Discovery Assessments Carelessness Under S 29 TMA Self Assessment Surcharges for Late Payment

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

Ratio Decidendi

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

Court Disposition

Appeal allowed

Orders

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