Fraudulent agent’s actions were not taxpayer’s responsibility

The taxpayer worked offshore. A work colleague referred him to CACL because he thought he might be entitled to a tax rebate. CACL emailed the taxpayer saying they had requested an authorisation code from HMRC asking him to forward it to them when he received it. This he did on the understanding that it related to his rebate.

In September 2016 a self-assessment record was created for the taxpayer and CACL later submitted his 2015-16 tax return. It generated a tax overpayment which was repaid to the nominee named on the return Cryoblast. CACL also submitted the taxpayer’s 2016-17 return which produced another repayment and this too was paid to the named nominee on the return ECO Cooling Solutions Ltd. 

In March 2019 HMRC wrote to the taxpayer regarding claims for enterprise investment relief (EIS) contained in the purported returns for tax years ended 5 April...