Notice too vague

The taxpayer was interviewed under police caution in connection with benefit and mortgage fraud and admitted to having not paid tax or National Insurance on earnings.

He was sentenced to five years’ imprisonment in January 2010 in respect of the fraud.

HMRC issued an FA 2008 schedule 36 notice in 2013 requiring him to provide details of his income as a financial adviser and of payments to workers along with their names and addresses.

He did not respond and the Revenue imposed a penalty under para 39.

The taxpayer appealed on the grounds he had never been registered or traded as a financial adviser and that the tax department had accepted self assessment returns for 2009/10 and 2010 /11 were not required.

He revealed at the First-tier Tribunal hearing that the reason he had not responded to the sch 36 notice was because his paperwork...