In J Martin v HMRC (TC01990 – 24 May) an individual (M) was convicted in 2007 of several offences relating to dealing in counterfeit and contraband cigarettes. In February 2009 the court made a confiscation order of £35 316 under Proceeds of Crime Act 2002 s 6. In August 2009 HMRC issued discovery assessments charging income tax totalling £382 687 on M’s income from self-employment. M appealed contending that the confiscation order should be treated as extinguishing the tax liability on his income.
The First-tier Tribunal rejected this contention and dismissed his appeal. Judge Huddleston held that ‘in certain circumstances it may be the case that the proceedings under the Proceeds of Crime Act do indeed encompass an assessment of all of the tax liability which may or may not be due in particular circumstances but that can only be determined...
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In J Martin v HMRC (TC01990 – 24 May) an individual (M) was convicted in 2007 of several offences relating to dealing in counterfeit and contraband cigarettes. In February 2009 the court made a confiscation order of £35 316 under Proceeds of Crime Act 2002 s 6. In August 2009 HMRC issued discovery assessments charging income tax totalling £382 687 on M’s income from self-employment. M appealed contending that the confiscation order should be treated as extinguishing the tax liability on his income.
The First-tier Tribunal rejected this contention and dismissed his appeal. Judge Huddleston held that ‘in certain circumstances it may be the case that the proceedings under the Proceeds of Crime Act do indeed encompass an assessment of all of the tax liability which may or may not be due in particular circumstances but that can only be determined...
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