Although the Court of Appeal decided that HMRC had not made a discovery, the judgment contains unhelpful comments for taxpayers, as Clara Boyd and Ian Robotham (Pinsent Masons) explain.
The Court of Appeal’s decision in relation to discovery assessments in the case of HMRC v Tooth [2019] EWCA Civ 826 has been eagerly awaited. It represents a win for Mr Tooth because the judges decided that HMRC had not made a ‘discovery’ and so was out of time to assess him to tax. However comments by the judges as to what constitutes an ‘inaccuracy’ and what amounts to deliberate conduct will not be good news for taxpayers in general.
The facts
Mr Tooth entered into the ‘Romangate’ tax planning scheme designed to generate employment-related losses which could be set off against income in the previous tax year. When Mr Tooth’s...
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Although the Court of Appeal decided that HMRC had not made a discovery, the judgment contains unhelpful comments for taxpayers, as Clara Boyd and Ian Robotham (Pinsent Masons) explain.
The Court of Appeal’s decision in relation to discovery assessments in the case of HMRC v Tooth [2019] EWCA Civ 826 has been eagerly awaited. It represents a win for Mr Tooth because the judges decided that HMRC had not made a ‘discovery’ and so was out of time to assess him to tax. However comments by the judges as to what constitutes an ‘inaccuracy’ and what amounts to deliberate conduct will not be good news for taxpayers in general.
The facts
Mr Tooth entered into the ‘Romangate’ tax planning scheme designed to generate employment-related losses which could be set off against income in the previous tax year. When Mr Tooth’s...
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:
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