Weekly case highlights ― 11 October 2021

Produced by Tolley

The following Owner-Managed Businesses guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Weekly case highlights ― 11 October 2021
  • Income tax
  • Keith Puttock v HMRC
  • Business tax
  • Grazer Learning Ltd v HMRC
  • Corporation tax
  • Vitol Aviation UK Ltd v HMRC
  • Capital gain tax
  • Roger Crippin v HMRC
  • Inheritance tax
  • More...

Weekly case highlights ― 11 October 2021

These are our brief notes and thoughts on cases published in the last week or so which caught our eye and are likely to be of particular interest to tax practitioners. Full case reports and commentary on most of these cases will be included within our normal reference sources in the coming weeks.

Income tax

Keith Puttock v HMRC

This is largely a routine case about late filing penalties but is worth mentioning at one point. The taxpayer was issued with a paper 2017/18 return in July 2019 and submitted it within 10 days. But he was charged a late filing penalty because the important date is the date on which he was given the notice to file and the Tribunal concluded (the evidence was not completely clear) that he had been given notice on or soon after 6 April 2018. So penalties were due. HMRC calculated these by reference to the paper filing date of 31 October. The Tribunal said that HMRC should have informed the taxpayer that if he had filed the return electronically penalties would have been calculated by reference to the electronic filing date of 31 January. The Tribunal said that this was a special circumstance and so recalculated the penalties by reference to the electronic filing date, thus reducing them from £1,300 to £940.

It is certainly an odd quirk of the system that if HMRC send you a paper return and you complete it and you incur a greater penalty than if you file online. HMRC should certainly inform taxpayers that this is how the rules work.

Business tax

Grazer Learning Ltd v HMRC

Tax appeals are all about evidence. Generally, the taxpayer has the burden of proof to show that HMRC’s assessments are wrong and this is next to impossible without evidence. This case shows just how important this is. The Tribunal had given standard directions for the exchange of witness statements between the parties but somebody

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