A recent tribunal decision has found in favour of the taxpayer after HMRC refused to suspend a tax geared penalty. The case was taken by BKL’s tax investigations team.
A recent tribunal decision has found in favour of the taxpayer after HMRC refused to suspend a tax geared penalty.
The taxpayer had omitted a capital gain from his tax return, which initially HMRC categorised as a deliberate omission; although HMRC did eventually accept that this was due to a lack of care by the taxpayer.
Following an appeal and internal HMRC review, it was necessary to appeal to the First Tier Tribunal. The case was taken by Doug Sinclair, Head of Tax Investigations at BKL.
The Judge ruled that the decision by HMRC not to suspend the penalty was fundamentally flawed and allowed the appeal.
Doug Sinclair commented “We are extremely pleased with the outcome of this case. Throughout the investigation HMRC continually asserted that the penalty could not be suspended due to the fact that no conditions could be attached to the suspension. This judgement confirms that HMRC’s interpretation of the legislation is wrong and acts as a further landmark case in this complex area.”
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