Taxpayer’s accounts were riven with inconsistencies

The tribunal judge set the scene for the appeal in his opening words:

‘Rarely has the quotation “Oh what a tangled web we weave…” been more appropriate. The tortuous and lengthy arguments advanced by the appellant frequently conflict one with the other and some aspects are literally incredible. These appeals are also extraordinary in the sense that the appellant denies absolutely everything including the fact that he attended meetings and had telephone calls with HMRC which are documented.’

The taxpayer placed the burden of proof on HMRC although declined to participate in a hearing. The judge agreed that this lay with HMRC in regard to the discovery assessment and penalties but considered it had discharged this burden.

In short the taxpayer appealed against closure notices a discovery assessment and penalties. HMRC claimed he had understated income from employment self-employment property and bank...