Lack of evidence on penalty calculation

The taxpayer failed to notify his chargeability to tax for the years ended 5 April 2012 2013 and 2015 to 2020. HMRC wrote to the taxpayer telling him it understand he owned and received income from property. The letter was returned saying the taxpayer did not live there. It was the only address HMRC held for the taxpayer so it issued an information notice there as well as a notice of intention to assess and impose penalties. Despite it not being the correct address the taxpayer received the letter and provided some information. This resulted in HMRC issuing assessments.

Afterwards an HMRC officer held a behavioural audit trail (BAT) call with the taxpayer’s agent. Based on that the officer notified the taxpayer of the penalties due. The taxpayer appealed against the penalties.

At the First-tier Tribunal hearing HMRC decided to replace a...