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Archives for Tax Tribunal Cases

Corporation Tax Boston UK

McFarlane [2018] TC 06512 – Tax Tribunal case lost for deliberate behaviour

The First Tier Tribunal judge found in this appeal that there was a valid discovery and the appellant’s actions were considered deliberate. The appellants agents FTR Accountants Company Limited had made a series of mistakes and errors in the appeal process and did even turn up to the hearing with the excuse that they had got their diaries wrong. This case demonstrates the importance of cooperating with HMRC from the outset and to ensure the formal appeal process is adhered to by the agents as any mistakes could prove to be costly.

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Corporation Tax Boston UK

Code of Practice 9 tax investigation closed

This client came to us from London after he was referred to our firm by his accountants. This Code of Practice 9 ( COP 9 ) tax investigation case was being dealt with by a forensic accountant in Wales who decided to close his business and do a runner after taking a large fee upfront. The case involved undisclosed income from various sources over 13 years and involved complex transactions. Our team of tax experts took on the case and after thoroughly investigating the facts and meeting with HMRC officers, were able to reach a settlement that was acceptable to our client and HMRC. The case was closed and our client thanked us for our efforts to bring his life back to normal.

Our analysis: Code of practice 8 and code of practice 9 tax investigation cases are very complex. With Code of Practice 9 cases, there is immunity for making a full disclosure. If however, the tax payer does not make a full disclosure, there is a risk of prosecution by HMRC. There have been numerous cases of tax payer being sentenced to prison for not making a full disclosure during the Code of Practice 9 enquiry. Our team of tax specialists have extensive experience in dealing with Code of Practice 8 and Code of Practice 9 investigations and negotiating best possible settlements for the clients.

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Man jailed after failing to comply with Code of Practice 9 investigation

Bartley Murphy from Demesne Road, Downpatrick, has been sentenced to prison for 2 years and three months for tax fraud. Mr. Murphy developed and sold several houses between 2007 and 2014 but did not declare his profits to HMRC or paid any tax. He was offered Contractual Disclosure Facility under Code of Practice 9 by HMRC to make a full disclosure of his tax irregularities. However, despite being under a serious tax investigation Mr. Murphy chose to lie and did not make a full disclosure. Read more.

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Galiara [2018] TC 06431

The First Tier Tribunal has decided in favour of the appellant appeal against late filing penalties issued by HMRC. The Tribunal Judge found that HMRC had not been able to provide sufficient evidence that a notice to deliver a tax return had been sent to the tax payer. This case demonstrates that HMRC’s penalty system is not always right and that if appealed correctly, penalties issued wrongly can be cancelled.

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