No misunderstanding of HMRC’s case

The taxpayer was a drinks wholesaler incorporated in 2002 and went into members’ voluntary liquidation in June 2013.

HMRC raised best judgment assessments based on gross sums of cash deposited at the taxpayer’s bank.

The taxpayer’s appeal was dismissed by the First-tier and Upper Tribunals. It was granted permission to appeal to the Court of Appeal on one ground – that there was a procedural irregularity leading to unfairness. The taxpayer claimed the Upper Tribunal had misunderstood HMRC’s case as pleaded before the First-tier Tribunal.

The Court of Appeal considered that the arguments were ‘well understood by the Upper Tribunal’ which agreed it was the taxpayer’s responsibility to show an assessment was incorrect, even if this were to involve fraud, as suspected by HMRC.

The taxpayer’s appeal was dismissed.

Issue: 4806 / Categories: Tax cases