In Powerlaunch Ltd v HMRC (TC01426 – 13 October) HMRC formed the opinion that a close company (P) had underdeclared its profits. They issued discovery assessments and also issued assessments under what is now CTA 2010 s 455 on the basis that the underdeclared takings had been loaned or advanced to P’s controlling director.
The First-tier Tribunal reviewed the evidence in detail and upheld the assessments in principle while reducing the amounts. Judge Barton found that the director’s evidence was ‘less than credible’.
Why it matters: CTA 2010 s 455 provides for a charge to tax ‘if a close company makes a loan or advances money to a relevant person who is a participator in the company or an associate of such a participator’.
This provision is not restricted to cases where...
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In Powerlaunch Ltd v HMRC (TC01426 – 13 October) HMRC formed the opinion that a close company (P) had underdeclared its profits. They issued discovery assessments and also issued assessments under what is now CTA 2010 s 455 on the basis that the underdeclared takings had been loaned or advanced to P’s controlling director.
The First-tier Tribunal reviewed the evidence in detail and upheld the assessments in principle while reducing the amounts. Judge Barton found that the director’s evidence was ‘less than credible’.
Why it matters: CTA 2010 s 455 provides for a charge to tax ‘if a close company makes a loan or advances money to a relevant person who is a participator in the company or an associate of such a participator’.
This provision is not restricted to cases where...
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:
