In J Okolo v HMRC (Upper Tribunal – 19 November) an individual (JO) submitted four tax returns declaring income from property development. HMRC began an enquiry into the returns and formed the opinion that JO ‘could provide no credible evidence to substantiate the figures for either turnover or expenditure’. They subsequently issued amendments to JO’s returns accepting his declared turnover figures but disallowing some of the claimed expenditure. JO appealed contending that he had submitted false returns and accounts in the hope of obtaining a bank loan. The Upper Tribunal accepted JO’s evidence and allowed his appeal (reversing the First-tier decision). Arnold J held that ‘there is simply no credible evidence that (JO) carried on any business or trade as either a property developer or a builder during the four years in question’ and that ‘in the absence of any challenge to (JO’s) evidence to the tribunal...
