Sunny side up

[webberg]

This thread I will use and invite contributions to, for snippets of information that support the taxpayer against the crushing weight of HMRC.

The idea is to provide some counterbalance to the seemingly unending doom and gloom.

A starter for 10.


The decision of the Upper Tribunal in David Stephen Sanderson v HMRC [2013] UKUT 623 (TC) included these remarkable words:

“There is no statutory provision imposing an obligation on a taxpayer to tell HMRC about something in a filed return that he subsequently finds to be erroneous. The most that can be said is that a failure to correct an error can potentially affect a taxpayer’s exposure to penalties (see TMA 1970, s 95 and s 97(1)).”

[bhavvy]

Fight The Power !

Tribunal orders HMRC to pay Taxpayers costs in avoidance case !


Tribunal orders HMRC to pay taxpayers' costs in avoidance case - RPC Tax Take


This is the conclusion :

HMRC is often very quick to allege that taxpayers have negligently delivered an incorrect return and impose penalties, especially where taxpayers have participated in tax planning arrangements. The FTT has made it very clear that in such circumstances, HMRC must not only particularise its allegations of negligence - it is not sufficient to simply make a general assertion - it must also adduce sufficient evidence in support of that allegation. Failure to do so will not only lead to the taxpayer's appeal against the imposition of penalties succeeding, it is also likely to lead to an adverse costs order against HMRC under Rule 10(1)(b) of the Tribunal Rules.

[Iliketax]

While I don't want to spoil the sunny theme, I am going to. The nice little quotes are great but to me, the more worrying thing about these cases is that the implementation seemed to have been carried out in an ... unusual way:

HMRC ...had received information that there was no record of the transactions in the derivatives at [the third-party brokers] ... the Inland Revenue challenged the Castle Trust losses on the basis firstly that the transaction leading to the loss was in law, a sham ... The Castle Trustee took advice from Leading Tax Counsel and he expressed the view that there was insufficient evidence and witnesses to show that the payments underlying the transaction were actually effected.

We were taken to the principal documents implementing the scheme ... These included the offer of a loan dated 2 September 2005 and certain bank statements which suggested that the funds did not move between companies controlled by the scheme promoter until November 2005, after the acquisition and disposal of the capital redemption policies had purportedly been completed. ... the documents which might give rise to a suspicion that the implementation of the scheme was flawed were all what Mr Gordon described as “unilateral documents”

[webberg]

While I don't want to spoil the sunny theme, I am going to. The nice little quotes are great but to me, the more worrying thing about these cases is that the implementation seemed to have been carried out in an ... unusual way:

Sadly you are correct.

In both cases the promoter failed to execute the transaction as promised and that was then and remains now a fatal error.

However the quotes are valid and remain good dicta.

[BrilloPad]

I was hoping for more posts here!

[DotasScandal]

I was hoping for more posts here!

Good things come to those who wait... Patience is virtue.

[Tass1968]

I don't know if this constitutes good news or not - but at least it feels like there might another avenue if HMRC get their way.

Wealthy City investors sue finance firm Ingenious over film investments  | Daily Mail Online

[StrengthInNumbers]

Not sure if good new or bad. Monkeys start fighting over bread and fox (HMRC) eats it!

[DotasScandal]

Can't see how this can qualify as a good thing.
HMRC divides and rules once again.

Let's try not updating this thread unless there are some actual positive developments... feels like a cold shower otherwise

[kmpm]

Had apn warning letter but no discovery or open enquiry. Tax year 10/11. challenged hmrc and they phoned today and will write to confirm they will not issue apn and that 10/11 tax year I'd closed on 4 year rule. Great relief.