Flash Film Transport Ltd v The Commissioners for Her Majesty’s Revenue and Customs: FTTTx 2 Jan 2019

INCOME TAX – application to make a late appeal – whether an appeal can be made directly to the Tribunal – whether an appeal can be made by more than one Appellant in single document – whether a late appeal application to HMRC is valid if it fails to include a submission on reasonable excuse – whether a late appeal application in relation to an assessment also includes the related penalty – application over one year late – Martland considered and applied – application refused

[2019] UKFTT 4 (TC)
Bailii
England and Wales

Income Tax

Updated: 06 December 2021; Ref: scu.632691

Advantage Business Finance Ltd v Revenue and Customs: FTTTx 9 Jan 2019

(Income Tax/Corporation Tax : Penalty) PENALTIES – late filing of ATED return – Schedule 55 to FA 2009 – whether retrospective notices meet the requirement under para 4(1)(c) for the daily penalties to be imposable – whether para 17(3) capping provision applies – whether the 6-month late filing penalty ‘fixed’ or ‘tax-geared’ – whether reasonable excuse or special circumstances – proportionality – appeal allowed in part

[2019] UKFTT 30 (TC)
Bailii
England and Wales

Income Tax

Updated: 06 December 2021; Ref: scu.632686

Pike v HM Revenue and Customs: CA 20 Jun 2014

The taxpayer challenged rejection of his claim for a loss relief arising from a ‘relevant discounted security’ within the meaning of Schedule 13 to the Finance Act 1996.
Held: It would only be such if, taking the security as at the time of its issue, the amount payable on maturity, or on any redemption before maturity, would or might be an amount ‘involving a deep gain’. Such amount will involve a deep gain if the issue price is relevantly less than the amount so payable. In identifying the amount so payable, however, paragraph 3(6) requires to be left out of account ‘any amount payable on that occasion by way of interest’.
Held: The appeal failed.
Rimer LJ said: ‘It was possible to identify certain characteristics of an amount payable by way of interest. First, it is calculated by reference to an underlying debt. Second, it is a payment made according to time, by way of compensation for the use of money. Third, the sum payable accrues from day to day or at other periodic intervals. Fourth, whilst the payment so accrues, it does not, in order for it to be interest, have to be paid at any intervals: it is possible for interest not to become payable until the principal becomes payable (see Willingale). Fifth, what the payment is called is not determinative; the question must always be one as to its true nature. Sixth, the fact that an interest payment may be aggregated with a payment of a different nature does not ‘denature’ the interest payment.’

Rimer, Tomlinson, Underhill LJJ
[2014] EWCA Civ 824
Bailii
Finance Act 1996
England and Wales
Citing:
At FTTTxPike v Revenue and Customs FTTTx 4-May-2011
FTTTx Income tax – whether a security was a relevant discounted security – security paying on redemption a sum calculated as 7.25% per annum accruing daily – whether ‘interest’ includes sums not paid periodically . .
Appeal fromPike v HM Revenue and Customs UTTC 10-May-2013
UTTC INCOME TAX – claim for loss on disposal of loan stock – whether loan stock a ‘relevant discounted security’ – FA 1996, Sch 13, para 3 – whether additional payment on redemption of loan stock was interest – . .
CitedWillingale (Inspector of Taxes) v International Commercial Bank Ltd HL 1978
Discount on a commercial bill differs from interest because, unlike interest, it does not accrue from day to day. If the discount is income, it is assessable to the holder at maturity or when the bill is sold by the holder to a third party because . .
CitedChevron Petroleum UK Ltd v BP Petroleum Ltd ChD 1981
The fact that an interest payment may be aggregated with a payment of a different nature does not ‘denature’ the interest payment . .

Lists of cited by and citing cases may be incomplete.

Income Tax

Updated: 05 December 2021; Ref: scu.526962

Raj Cuisine (Kells) Ltd v Revenue and Customs: FTTTx 4 Jun 2014

FTTTx VAT AND INCOME TAX – Suppression of takings and who was responsible – was assessment raised to best judgment – yes – was the quantum correct – no – alternative calculation by the tribunal – appeal allowed in part
PENALTY – Section 60 and 61 VAT Act 1994 – appeal dismissed.

[2014] UKFTT 545 (TC)
Bailii

VAT, Income Tax

Updated: 05 December 2021; Ref: scu.526947

Figg v Revenue and Customs: FTTTx 16 Jun 2014

FTTTx INCOME TAX – relocation benefits – no change in residence due to cessation of employment – does relief apply – penalties and surcharges for late payment of income tax and late filing of tax returns – section 271 ITEPA 2003 – s59C and s93 TMA 1970

[2014] UKFTT 578 (TC)
Bailii
Taxes Management Act 1970 59C 93

Income Tax, Taxes Management

Updated: 05 December 2021; Ref: scu.526918

Howes v Revenue and Customs: FTTTx 11 Jun 2014

FTTTx Income tax – Penalties under s 59C Taxes Management Act 1970 and Schedule 56 Finance Act 2009 for late payment of income tax – Appellant believed that a time to pay arrangement that had been agreed for tax due in the previous year continued and covered tax due in the following tax year – whether reasonable excuse – no – appeal disallowed

[2014] UKFTT 598 (TC)
Bailii

Income Tax, Taxes Management

Updated: 05 December 2021; Ref: scu.526924

Lawford v Revenue and Customs: FTTTx 11 Jun 2014

FTTTx Income Tax – Strike out application – repayment claims – personal tax returns submitted late -equitable liability claimed – held – equitable liability not available – failure by HMRC to consider equitable relief outside jurisdiction of tribunal- no legal basis on which time limits could be extended -strike out allowed.

[2014] UKFTT 582 (TC)
Bailii

Income Tax

Updated: 05 December 2021; Ref: scu.526929

Rivers v Revenue and Customs: FTTTx 23 May 2014

Income tax – Penalties under s 59C Taxes Management Act 1970 and Schedule 56 Finance Act 2009 for late payment of income tax – underpayment of income tax caused by employer collecting and accounting for tax at basic rate – tax payable at the higher rate – whether reasonable excuse – no – appeal disallowed

[2014] UKFTT 510 (TC)
Bailii
England and Wales

Income Tax

Updated: 05 December 2021; Ref: scu.526873

Perrin v Revenue and Customs: FTTTx 21 May 2014

INCOME TAX – penalties for late filing and late payment – ten penalties over two years – suggested approach where multiple penalties – whether honest belief a reasonable excuse – whether unexpected or unusual event necessary for reasonable excuse – whether some of Appellant’s appeals were late – whether some of her applications were late – two consecutive mistakes when filing return – whether provide reasonable excuse for late filing – whether belief that tax would be collected via PAYE reasonable excuse for late payment – the law on collecting tax debts via PAYE – whether Appellant’s failures remedied without unreasonable delay after excuse ceased – special circumstances – appeal allowed in part

[2014] UKFTT 488 (TC)
Bailii
England and Wales

Income Tax

Updated: 05 December 2021; Ref: scu.526863

Berrier v Revenue and Customs: FTTTx 13 May 2014

FTTTx INCOME TAX – forgivable loan – when was loan waived – timing of tax charge – carelessness – penalties – special circumstances – section 62 ITEPA 2003 and Schedule 24 Finance Act 2007
COSTS – wasted costs – party acting unreasonably – power of Tribunal to award costs – section 29, Tribunals, Courts and Enforcement Act 2007 – Rule 10, Tribunal Procedure (First-tier Tribunal)(Tax Chamber) Rules 2009

[2014] UKFTT 457 (TC)
Bailii
England and Wales

Income Tax

Updated: 05 December 2021; Ref: scu.526793

Ardmore Construction Ltd v Revenue and Customs: FTTTx 13 May 2014

FTTTx Income Tax – Interest payments made by United Kingdom company to offshore trusts/companies – Whether interest ‘arising in the United Kingdom’ within the meaning of s 874 Income Tax Act 2007 – Whether unpublished decision of Special Commissioner should be cited – Effect of citation of unpublished decision of Special Commissioner on subsequent decision of Tribunal

[2014] UKFTT 453 (TC), [2014] SFTD 1077, [2014] STI 2585, 16 ITL Rep 992
Bailii
Income Tax Act 2007 874
England and Wales

Income Tax

Updated: 05 December 2021; Ref: scu.526787

Martin v Lowry (HM Inspector of Taxes): HL 7 Dec 1926

The taxpayer had purchased the entire war-surplus of aircraft cloth, expecting to sell it in one go at a profit. When the sale fell through, he sold it off, at a considerable profit, in a large number of smaller transactions. He argued that he was not acting in the cours eof trade, and second that since there was no repeat business, the profits were not annual in the sense to be understood in the Acts.
Held: The finding that he was acting in the course of trade was a finding of fact amply justified by the evidence before the Commissioners. Cave LC: ‘there are, no doubt, passages in the Act in which the word ‘annual’ or the word ‘yearly’ has an implication of recurrence; but one must have regard to the context in which the words are found, and, having regard to the context, I do not think that there is any such implication in the words ‘annual profits or gains’ as applying to the profits or gains arising in respect of a trade which are taxable under Schedule D of the Act. ‘
Lord Sumner: ‘With regard to the argument raised on the word ‘annual’, I would point out that the nature of the trade, as described in the Case Stated, was such as to show that there was at the outset every possibility of repeated trading operations and a considerable chance of their lasting over a protracted period; and I do not question that the word ‘annual’, in connection with the profits of that trade, would be satisfied by there being profits falling within the year of charge, upon which the system of the Income Tax Acts is based.’

Viscout Cave LC, Lords Atkinson, Shaw of Dumfermline, Sumner and Carson
(1926) 1 KB 550, 11 Tax Cas 297, [1927] AC 312
Bailii
Income Tax Act 1918 SchD
England and Wales
Citing:
At first instanceMartin v Lowry (HM Inspector of Taxes) KBD 15-Jun-1925
The taxpayer had other business, but purchased a substantial quantity of cloth and resold it. He said this was not by way of trade. The Revenue said that he had used all the standard trade practices, and it was taxable as such.
Held: The . .
Appeal fromMartin v Lowry (HM Inspector of Taxes) CA 1926
The appellant purchased the entire stock of government surplus aircraft linen. He had another main business and had intended to resell it immediately. When that failed to promise a profit he set out to sell and sold the material over several months . .

Lists of cited by and citing cases may be incomplete.

Income Tax

Updated: 05 December 2021; Ref: scu.235902

Commission v Estonia: ECH 10 May 2012

ECJ Failure of a Member State to fulfil obligations – Freedom of movement for workers – Income tax – Allowance – Retirement pensions – Effect on small pensions – Discrimination between resident and non-resident taxpayers

J-C Bonichot, P
[2012] EUECJ C-39/10, C-39/10
Bailii
Citing:
See AlsoCommission v Estonia ECJ 4-Jun-2010
Order – Interventions . .
OpinionCommission v Estonia ECJ 24-Nov-2011
ECJ Opinion – Failure to fulfill obligations – Objection of inadmissibility – Interveners – Freedom of movement for workers – Article 45 TFEU – Article 28 of the EEA Agreement – Tax legislation – Income tax – . .

Lists of cited by and citing cases may be incomplete.

European, Income Tax

Updated: 04 December 2021; Ref: scu.526258

Liu (T/A Wings Chinese Takeaway) v Revenue and Customs: UTTC 15 May 2014

UTTC PAYE — Employer’s year-end return – penalty for late submission – whether submitted on time – no – whether penalty due – yes – whether penalty can be discharged on grounds of unfairness – no – whether HMRC’s maintenance prevented submission on time – no – whether penalty proportionate – yes – whether reasonable excuse for late submission – no – penalty confirmed

[2014] UKFTT 477 (TC)
Bailii
England and Wales

Income Tax

Updated: 03 December 2021; Ref: scu.525955

Reed Employment Plc and Others v Revenue and Customs: UTTC 9 Apr 2014

UTTC INCOME TAX and NATIONAL INSURANCE CONTRIBUTIONS – allowances for travel and subsistence costs- character of allowances – whether earnings under ITEPA Part 3 Chapter 1 – Yes – or sums treated as earnings under ITEPA Part 3 Chapter 3 – No – whether recipients had permanent or temporary workplaces – permanent – travel costs ordinary commuting expenses and not deductible – whether allowances within dispensations granted pursuant to ITEPA s65 -No – whether dispensations could lawfully be granted – No
JUDICIAL REVIEW – whether appellants had legitimate expectation that allowances would not be subject to income tax and NICs and that dispensations would not be revoked and HMRC would not seek income tax and NICs from employees retrospectively – No
Whether appellants under obligation as employers to make PAYE deductions in respect of allowances paid – Yes – appeal and judicial review application dismissed

[2014] UKUT 160 (TCC)
Bailii
England and Wales

Taxes – Other, Income Tax

Updated: 03 December 2021; Ref: scu.525886

Lai and and Another (T/A Gourmet House) v Revenue and Customs: FTTTx 30 Apr 2014

FTTTx Income tax and NICs – determinations/decision issued in respect of undeclared employer liabilities arising from employment of workers – issued on reasonable basis – no evidence that they were overstated (except in one minor respect) – appeals allowed in part, to adjust for earlier termination date, otherwise HMRC determinations/decision upheld

[2014] UKFTT 402 (TC)
Bailii

Income Tax

Updated: 03 December 2021; Ref: scu.525358

Febrey v Revenue and Customs: FTTTx 2 May 2014

FTTTx INCOME TAX and NIC – PAYE- whether appellant’s salary for 2007/08 paid by company of which he was sole director under deduction of PAYE and NIC as included in self-assessment return – no – whether appellant personally liable for PAYE and NIC unpaid on basis that he received relevant payments knowing that employer wilfully failed to deduct tax and NIC – yes – whether sums allocated to director’s loan account as consultancy fees and dividends impliedly for others for 2005/06 and 2006/07 in fact such fees and dividends – no – sums held to be income of appellant – whether appellant personally liable for tax and NIC on such sums again on basis that he received them knowing that employer wilfully failed to deduct tax and NIC – yes – appeal dismissed

Demack TJ
[2014] UKFTT 401 (TC)
Bailii
England and Wales

Income Tax

Updated: 03 December 2021; Ref: scu.525399

Whittle v Revenue and Customs: FTTTx 4 Mar 2014

INCOME TAX – Assessment for additional tax after continuation – penalties – whether sufficient records delivered – whether income undeclared in light of family household expenditure – financial information of spouse not disclosed because of secrecy – Appeal allowed. Sections 12, 29, 34 and 36 of the Taxes Management Act 1970 and Part 1 Finance Act 2007

[2014] UKFTT 254 (TC)
Bailii
England and Wales

Income Tax

Updated: 03 December 2021; Ref: scu.525311

Cardazzone (T/A Mediterranean Ices) v Revenue and Customs: FTTTx 14 Apr 2014

INCOME TAX – underdeclaration of takings – inadequacy of records – whether declared takings and other income insufficient to cover bank deposits and cash expenditure – agreed errors – presumption of continuity – appeal allowed

[2014] UKFTT 357 (TC)
Bailii
England and Wales

Income Tax

Updated: 03 December 2021; Ref: scu.525327

Collins v Revenue and Customs: FTTTx 19 Mar 2014

FTTTx CAPITAL GAINS TAX – INCOME TAX – application for an extension of time for the making of an appeal to the Tribunal – balancing exercise undertaken – O’Flaherty v HMRC [2013] UKUT 161 (TC) and HMRC v McCarthy and Stone (Developments) Ltd considered – Tribunal’s discretion exercised to refuse an extension in the light of the overriding objective of the Tribunal’s rules

[2014] UKFTT 274 (TC)
Bailii

Capital Gains Tax, Income Tax

Updated: 03 December 2021; Ref: scu.525254

White v Revenue and Customs: FTTTx 20 Feb 2014

FTTTx INCOME TAX – self-employed flying instructor with office at home – travel between home and two airfields where he gave flying lessons – deductibility of travel expenses and telephone expenses – whether travel expenses incurred wholly and exclusively for the purpose of his self-employment – no – whether amounts assessed in relation to telephone expenses were excessive – no – whether discovery assessments were valid – yes – appeal dismissed

[2014] UKFTT 214 (TC)
Bailii
England and Wales

Income Tax

Updated: 03 December 2021; Ref: scu.525240

Hogg Joinery Ltd v Revenue and Customs: FTTTx 19 Mar 2014

PAYE – Late lodging of employer’s annual return – Late intimation of failure to submit returns for previous years – No penalty notices issued for previous years so no appeal- dispute over extent of telephone contact with HMRC – Whether reasonable excuse – Yes – Appeal allowed

[2014] UKFTT 286 (TC)
Bailii
England and Wales

Income Tax

Updated: 03 December 2021; Ref: scu.525263

Smith v Revenue and Customs: FTTTx 22 Jun 2018

Income Tax/Corporation Tax : Penalty – individual tax return – penalties for late filing – whether properly imposed – no – no evidence that a valid notice to file under section 8(1) TMA 1970 had been given to the taxpayer by an ‘officer of the Board’ – appeal allowed

[2018] UKFTT 461 (TC)
Bailii
England and Wales

Income Tax

Updated: 03 December 2021; Ref: scu.622367

May and Another (T/A SC May) v Revenue and Customs: FTTTx 10 Jan 2019

Income Tax/Corporation Tax : Capital Allowances – INCOME TAX – capital allowances – facility for drying, conditioning and storage of grain – whether a ‘silo provided for temporary storage’ (CAA s 23 List C) – whether ‘plant or machinery’ (CAA s 11(4)(a))

[2019] UKFTT 32 (TC)
Bailii
England and Wales

Income Tax

Updated: 03 December 2021; Ref: scu.632697

DB Group Services (UK) Ltd v Revenue and Customs: CA 16 Apr 2014

The two companies had established schemes designed to minimise tax on payments to employees, using a purpose made company to take advantage of exemptions under section 423. In oe cse the Revenue appealed against rejection of its challenge,nd in the other the taxpayer.
Held: HMRC’s appeal failed, and that of the second company (UBS) succeeed. It was clear that the ordinary and natural sense of the words in question was that they required no more than that the forced sale provision be ignored. The argument that the scheme should be treated as merely a mechanism for the payment of cash should be rejected.

Rimer, Kitchin, Christopher Clarke LJJ
[2014] EWCA Civ 452
Bailii
Income Tax (Earnings and Pensions) Act 2003 423
England and Wales
Citing:
At FTTTXDeutsche Bank Group Services (UK) Ltd v Revenue and Customs FTTTx 19-Jan-2011
Regulation 80, PAYE Regulations – Section 8, Social Security Contributions (Transfer of Functions, etc) Act 1999 – whether sums paid into a share scheme were earnings of the staff for whom they were paid – whether the shares purchased as part of the . .
At UTUBS AG v HM Revenue and Customs UTTC 17-Sep-2012
UTTC Income Tax and NICs: scheme to deliver bonuses in form of shares avoiding income tax and NIC. S18(1) ITEPA Rule 2 – whether employee became ‘entitled to payment’ when amount of bonus determined. Ch 2 Part 7 . .

Cited by:
At CAUBS Ag and Another v Revenue and Customs SC 9-Mar-2016
UBS AG devised an employee bonus scheme to take advantage of the provisions of Chapter 2 of the 2003 Act, with the sole purpose other than tax avoidance, and such consequential advantages as would flow from tax avoidance. Several pre-ordained steps . .

Lists of cited by and citing cases may be incomplete.

Income Tax

Updated: 02 December 2021; Ref: scu.523826

Fieldmuir Ltd T/A Centurion Freight Services v Revenue and Customs: FTTTx 1 Nov 2021

INCOME TAX AND NATIONAL INSURANCE CONTRIBUTIONS – strike out application – appeal against refusal to repay income tax (PAYE) and NICs – overpaid income tax: claim did not meet requirements of Schedule 1A TMA 1970 – consideration of whether HMRC exercised care and management powers to waive requirements – held: they did not – hence Tribunal did not have jurisdiction – overpaid NICs: HMRC made decision that precondition to regulation 52 Social Security (Contributions) Regs 2001 application (that NICs paid in error) not satisfied – decision was subject to appeal to Tribunal – Tribunal had jurisdiction – application for strike out allowed in part (income tax) and dismissed in part (NICs)

[2021] UKFTT 389 (TC)
Bailii
England and Wales

Taxes – Other, Income Tax

Updated: 02 December 2021; Ref: scu.669779

Nordea Bank v Skatteministerium: ECJ 13 Mar 2014

ECJ Opinion – Tax legislation – Freedom of establishment – National Income tax – Taxation Group – Taxation of the activity of foreign permanent establishments of companies resident – Prevention of double taxation through imputation tax (imputation) – Reinstatement of losses previously taken into account in case of transfer of the permanent establishment within the group and disappearance of powers of taxation

Juliane Kokott AG
C-48/13, [2014] EUECJ C-48/13, [2014] EUECJ C-48/13
Bailii, Bailii

European, Income Tax

Updated: 01 December 2021; Ref: scu.522490

Tuncel v Revenue and Customs: FTTTx 7 Feb 2014

FTTTX Income tax, class 4 NIC, associated penalties and VAT dishonest evasion penalty – whether respective appeals settled by agreement – representative argued that agreement vitiated because he had mistaken extent of his authority – held, on the facts, that appeal of amendment/assessments relating to income tax and class 4 NICs settled by agreement but appeals of associated penalties and of VAT dishonest evasion penalties not so settled – mistake by representative as to his instructions irrelevant to this – appeal in relation to amendment/assessments therefore struck out but penalty appeals permitted to continue – but agreement reached as to amounts of undeclared takings inherent in settlement of direct tax appeal may not be re-opened in the penalty appeals

Poole TJ
[2014] UKFTT 171 (TC)
Bailii

Income Tax

Updated: 30 November 2021; Ref: scu.521809

Flanagan and Others v Revenue and Customs: FTTTx 10 Feb 2014

FTTTx INCOME TAX – loss relief – admitted avoidance scheme – whether trade existed – no – if existed, when begun – whether manufactured payment representative of overseas dividend – no – whether payment an incidental cost of obtaining finance – no – scheme unsuccessful – whether if scheme succeeded it would fail on Ramsay principles – yes – appeals dismissed

[2014] UKFTT 175 (TC)
Bailii
England and Wales

Income Tax

Updated: 30 November 2021; Ref: scu.521783

Powerplus Engineering Ltd v Revenue and Customs: FTTTx 4 Feb 2014

FTTTx Penalty – late payment of PAYE and NICs (FA 2009 Sch 56) – Whether a reasonable excuse for late payment – No – Whether ‘special circumstances’ justifying a special reduction – No – Appeal dismissed

[2014] UKFTT 152 (TC)
Bailii
Finance Act 2009 Sch 56
England and Wales

Taxes Management, Income Tax

Updated: 30 November 2021; Ref: scu.521798

JM Williams (Trustee In Bankruptcy for RWG Denny) v Revenue and Customs: FTTTx 10 Feb 2014

FTTTx INCOME AND CAPITAL GAINS TAX – decision of tribunal in principle – hearing adjourned for parties to determine figures – subsequent allegations by appellant that tribunal misled by HMRC’s witness – whether misleading evidence – jurisdiction – quantification of income and capital gains tax due – whether jurisdiction to consider interest calculation and charge – relevance to calculation of penalties of settlement offer made by appellant –

[2014] UKFTT 200 (TC)
Bailii
England and Wales

Income Tax, Capital Gains Tax

Updated: 30 November 2021; Ref: scu.521791

Favourtech Systems Ltd v Revenue and Customs: FTTTx 10 Feb 2014

FTTTx INCOME TAX – late application for full decision – late application to appeal against HMRC penalty decision for late submission of P35 – reliance on agent – whether reasonable excuse – no – whether penalty should be reduced for part-month – no – appeal dismissed and andpound;500 penalty upheld.

[2014] UKFTT 198 (TC)
Bailii
England and Wales

Income Tax

Updated: 30 November 2021; Ref: scu.521782

Makevine Ltd v Revenue and Customs: FTTTx 7 Feb 2014

FTTTx PAYE – Employer’s year-end return – penalties for late submission – whether submitted on time – no – whether penalties due – yes – whether penalties can be discharged on grounds of unfairness – no – whether finding that HMRC’s failure to send prompt reminders unfair – no – whether reasonable excuse for late submission – no – penalties confirmed-

[2014] UKFTT 153 (TC)
Bailii

Income Tax

Updated: 30 November 2021; Ref: scu.521796