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Notice to provide set aside

A notice from HMRC to provide information was set aside. HMRC said it needed the notice as they had reason to suspect that income or capital gains has been unassessed. The right to such information is Condition B in Finance Act 2008 Sch 36 para 21(6). The tribunal said this set the bar very low, about the same height as for a discovery assessment under Taxes Management Act 1970 s29(1). In...
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Voting rights and entrepreneurs’ relief

Entrepreneur's relief was denied to a taxpayer because of non-compliance with a condition. The taxpayer did not hold 5% or more of voting rights before disposing of his shares. The taxpayer invested in Thornton & Ross Ltd (TRL), a medical and healthcare products company, founded in 1922. He disposed of his shares on 16 August 2013. The isse was whether this was a "personal company" withi...
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Whether tobacco offence was concealed or deliberate

A woman was held to have smuggled tobacco into the country when she arrived at the airport past the excise duty point but before she reached the customs point. She arrived at Gatwick Airport in July 2014 from Alicante, Spain with only hand luggage. This contained 21.65 kilograms of hand-rolling tobacco, and nothing else. The tobacco was seized. She was charged duty of £3,379 and a wrongdoing...
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Misdescribed drugs seized

Misdescribed drugs were restored to a taxpayer when they were to treat Addison's disease. Border Force seized 360 tablets of DHEA, also known as Prasterone at Stanstead Airport in November 2016. The taxpayer suffers from Addison's disease in which a person's body does not produce sufficient adrenal hormones. On medical advice, he took DHEA. This was imported from USA as it is not available i...
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Output tax from cafe till

On the facts of the case, a tribunal held that a cafe had not overstated its VAT standard-rated supplies as suggested by HMRC. The case concerns a franchise to run a branch of Subway in South Shields. HMRC said that the branch understated its standard-rated sales, and issued a VAT assessment for £47,875 for the period from May 2012 to January 2015. This followed an invigilation in which H...
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Access to tribunal papers

A firm of accountants was granted permission to receive copies of HMRC's statement of case and both parties' skeleton arguments in a case. This was to help it understand the arguments used, which can be relevant in another case in which KPMG has been instructed. The tribunal wrote to both parties, inviting them to make submissions. Both the taxpayer and HMRC objected. Under Civil Procedure R...
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Death of parent is no excuse

The death of a parent is no excuse for being ten months late with filing a tax return. "HMRC accepted that the death of a parent close to a filing deadline could constitute a reasonable excuse where the appellant could show that they had taken steps to have the return ready on time but where then delayed in filing. "Further, HMRC submitted that, to constitute a reasonable excuse, the effect ...
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Scope of capital allowances

A case has considered what items constitute plant and machinery in a hydroelectric power generation scheme at Glendoe near Loch Ness in Scotland. The total cost of the scheme is about £300 million. Capital allowances have been claimed for £260 million. HMRC accepts that only £34 million qualifies, leaving £227 million in dispute. The issue is whether items on a long list come within the scop...
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HMRC concluded ultra vires contract

A form of alternative dispute resolution (ADR) led to a contract that HMRC was not entitled to make. It was therefore ultra vires. This makes the term of the contract void. The ADR was called between a trust and HMRC to determine the tax position on various supporter schemes. Accordingly, the tribunal dismissed the trust's appeal and upheld the assessment. The case report can be downloade...
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No evidence means no penalty

When HMRC presents no evidence to justify a penalty, the penalties are discharged. A case was heard in which the taxpayer and HMRC both submitted inadequate evidence. The case report can be downloaded from here. Antony Mark Andrew Hughes. [2018] TC 6615 [18.08]
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