In M Hearn v HMRC (TC02433 – 8 January) an employee (H) was made redundant in 2008. He received a redundancy payment of £329 415 which he failed to disclose on his tax return. When HMRC discovered this they imposed a penalty at the rate of 15% of the potential lost revenue. The FTT upheld the penalty and dismissed H’s appeal. Judge Geraint Jones observed that ‘we do not accept that somebody as intelligent and accomplished in financial affairs as the appellant could have failed to observe that his P45 demonstrated that only basic rate tax had been deducted from his compensation payment any more than we accept that he was unaware that he would have to account for tax at his higher marginal rates by disclosing the sum received in his tax return. We are...
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In M Hearn v HMRC (TC02433 – 8 January) an employee (H) was made redundant in 2008. He received a redundancy payment of £329 415 which he failed to disclose on his tax return. When HMRC discovered this they imposed a penalty at the rate of 15% of the potential lost revenue. The FTT upheld the penalty and dismissed H’s appeal. Judge Geraint Jones observed that ‘we do not accept that somebody as intelligent and accomplished in financial affairs as the appellant could have failed to observe that his P45 demonstrated that only basic rate tax had been deducted from his compensation payment any more than we accept that he was unaware that he would have to account for tax at his higher marginal rates by disclosing the sum received in his tax return. We are...
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