Oliver Marre (5 Stone Buildings) outlines some lessons on tax litigation from a First-tier Tribunal decision.
The First-tier Tribunal judgment’s headnote in S Mullens v HMRC [2021] UKFTT 131 (TC) describes the case’s key issue like this: ‘Whether certain large payments made to the Appellant were taxable as income?’ The taxpayer’s counsel argued that payments which are ‘deserved rather than earned’ are not taxable. The payments in question were significant: including interest and penalties there was more than £20m at stake in the appeal.
Taxable payments?
The payments spanned different income tax Acts. The earlier payments were said HMRC taxable as part of ‘the annual profits or gains arising or accruing … from any trade profession or vocation’ under ICTA 1988 s 18(1)(a). The later payments were said to be taxable either under ITTOIA 2005 s 5 as ‘profits of a trade profession or vocation’ or alternatively as...
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Oliver Marre (5 Stone Buildings) outlines some lessons on tax litigation from a First-tier Tribunal decision.
The First-tier Tribunal judgment’s headnote in S Mullens v HMRC [2021] UKFTT 131 (TC) describes the case’s key issue like this: ‘Whether certain large payments made to the Appellant were taxable as income?’ The taxpayer’s counsel argued that payments which are ‘deserved rather than earned’ are not taxable. The payments in question were significant: including interest and penalties there was more than £20m at stake in the appeal.
Taxable payments?
The payments spanned different income tax Acts. The earlier payments were said HMRC taxable as part of ‘the annual profits or gains arising or accruing … from any trade profession or vocation’ under ICTA 1988 s 18(1)(a). The later payments were said to be taxable either under ITTOIA 2005 s 5 as ‘profits of a trade profession or vocation’ or alternatively as...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
