C O’Brien v HMRC

In C O’Brien v HMRC (TC02258 – 26 September) HMRC formed the opinion that an accountant’s tax returns had substantially understated his income and had omitted income from property transactions. They issued a notice under FA 2008 Sch 36 requesting information and documents. The accountant failed to comply with the notice and HMRC imposed penalties and issued amendments to his self-assessments. In July 2010 the accountant appealed contending that his records had been destroyed in a flood. Subsequently the First-tier Tribunal issued directions which the accountant failed to comply with. In August 2012 HMRC applied to the Tribunal requesting the appeal to be struck out on the grounds that the accountant had failed to comply with the directions. Judge Scott granted the application observing that the accountant had ‘repeatedly failed to comply’ with the tribunal’s directions and that...