McAdam v Revenue and Customs (INCOME TAX/CORPORATION TAX : Penalty) [2016] UKFTT 838 (TC) (20 December 2016)

McAdam v Revenue and Customs (INCOME TAX/CORPORATION TAX : Penalty) [2016] UKFTT 838 (TC) (20 December 2016)

The appellant failed to provide credible evidence to challenge the assessments or substantiate the claimed deductions for wife’s wages. The Tribunal found the HMRC’s assessments and penalties were reasonable and based on best judgment, and the presumption of continuity applied. The appeal was dismissed and the assessments and penalties confirmed.

Citation
[2016] UKFTT 838 (TC)
Parties
Appellant: William McAdam; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
20 December 2016
Procedural Posture
Income Tax/corporation Tax Penalty Appeal / First Tier Tribunal (tax Chamber) Substantive Decision
Outcome
Appeal dismissed
Legal Topics
Discovery Assessments, Self Assessment Tax Returns, Penalties Under Schedule 24 FA 2007, Deductibility of Wages, Burden of Proof in Tax Appeals
Tax Law Discovery Assessments Self Assessment Tax Returns Penalties Under Schedule 24 FA 2007 Deductibility of Wages Burden of Proof in Tax Appeals

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Parties

William McAdam

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

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

Legal Issues

  1. 1 Whether there were omitted cash sales resulting in understated turnover
  2. 2 Whether the deduction for wife’s wages was reasonable
  3. 3 Whether penalties under Schedule 24 Finance Act 2007 are due for inaccuracies in self-assessment tax returns

Ratio Decidendi

The appellant failed to provide credible evidence to challenge the assessments or substantiate the claimed deductions for wife’s wages. The Tribunal found the HMRC’s assessments and penalties were reasonable and based on best judgment, and the presumption of continuity applied. The appeal was dismissed and the assessments and penalties confirmed.

Court Disposition

Appeal dismissed

Orders

  • Assessments and penalties confirmed
  • No adjustments made to assessments