Weekly case highlights ― 5 July 2021

Produced by Tolley
Weekly case highlights ― 5 July 2021

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

  • Weekly case highlights ― 5 July 2021
  • Personal tax
  • HMRC v Jason Wilkes
  • Business tax
  • Northern Gas Networks Ltd v HMRC
  • Employment tax
  • Keith Murphy v HMRC
  • Tax administration
  • R (on the application of Haworth)
  • Eclipse Consultancy Ltd v HMRC

Weekly case highlights ― 5 July 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.

Personal tax

HMRC v Jason Wilkes

Two of the issues which have dominated the courts and tribunals in recent years have been discovery and the high-income child benefit charge (HICB). This important decision looks at the interaction between the two. The taxpayer’s circumstances meant that he was liable to the charge, but he had not notified HMRC of the liability. HMRC became aware that he was due to pay the charge but instead of issuing him with a return for the years in question, issued discovery assessments. Discovery allows HMRC to assess ‘income which has not been assessed’. The question here was whether or not the HICB charge fell within that definition. The HICB charge does not treat the child benefit itself as income ― it operates to increase the amount of tax payable by a recipient.

In a very carefully constructed decision, the tribunal went back to basics and analysed the precise way in which the rules for determining taxable income work. It came to the clear conclusion that a disco

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