A recent tribunal decision erodes the behavioural distinction between ‘careless’ and ‘deliberate behaviour’, write Constantine Christofi (RPC) and Sam Brodsky (Gray’s Inn Tax Chambers).
On 4 September 2019 the First-Tier Tribunal (FTT) released its decision in Cliff v HMRC [2019] UKFTT 564. The key part of the decision relates to the question of whether the taxpayer acted ‘deliberately’ so as to entitle HMRC to both issue discovery assessments under TMA 1970 s 29 and levy severe penalties under FA 2007 Sch 24.
Mr Cliff in addition to his usual work as a tax consultant considered himself to be self-employed as a ‘dealer in thoroughbreds’. He would purchase shares in racehorses (i.e. a percentage ownership stake) or in horse racing partnerships. Over a five-year period Mr Cliff lost £160 000 and accordingly claimed loss relief. The relevant...
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:
A recent tribunal decision erodes the behavioural distinction between ‘careless’ and ‘deliberate behaviour’, write Constantine Christofi (RPC) and Sam Brodsky (Gray’s Inn Tax Chambers).
On 4 September 2019 the First-Tier Tribunal (FTT) released its decision in Cliff v HMRC [2019] UKFTT 564. The key part of the decision relates to the question of whether the taxpayer acted ‘deliberately’ so as to entitle HMRC to both issue discovery assessments under TMA 1970 s 29 and levy severe penalties under FA 2007 Sch 24.
Mr Cliff in addition to his usual work as a tax consultant considered himself to be self-employed as a ‘dealer in thoroughbreds’. He would purchase shares in racehorses (i.e. a percentage ownership stake) or in horse racing partnerships. Over a five-year period Mr Cliff lost £160 000 and accordingly claimed loss relief. The relevant...
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:
