In TSD Design Development Engineering Ltd v HMRC (TC01941 – 19 April) a married couple controlled a small engineering company: the husband was the managing director while his wife was the company secretary. HMRC formed the opinion that the company had underdeclared profits which the couple had extracted from the business. They issued assessments and imposed penalties at the rate of 15% of the evaded tax. The company appealed. The First-tier Tribunal reviewed the evidence in detail and dismissed the appeal. Judge King observed that ‘it is clear from the cases that a default by directors can and should be assessed to tax in a company.’
In TSD Design Development Engineering Ltd v HMRC (TC01941 – 19 April) a married couple controlled a small engineering company: the husband was the managing director while his wife was the company secretary. HMRC formed the opinion that the company had underdeclared profits which the couple had extracted from the business. They issued assessments and imposed penalties at the rate of 15% of the evaded tax. The company appealed. The First-tier Tribunal reviewed the evidence in detail and dismissed the appeal. Judge King observed that ‘it is clear from the cases that a default by directors can and should be assessed to tax in a company.’
