FTTTx Income tax – construction industry scheme – deductions from payments to subcontractors – sums representing materials cost not to be subject to deduction – HMRC not accepting that materials cost amounts claimed could be justified – HMRC therefore considered under-deduction had taken place and issued determination under Reg 13 of CIS Regs to recover under-deduction – appellant argued that Reg 4 of CIS Regs only required that it should be ‘satisfied’ as to such amounts, therefore HMRC had no right to require further records to support materials cost claimed – held that section 61 FA04 required deduction to be made from all payments except to the extent ‘shown to represent’ the direct cost of materials – HMRC had used their best judgment in determining the amount underpaid under Reg 13 of CIS Regs, so burden lay on the appellant to show their determination was wrong – in the absence of appropriate evidence, that burden was not discharged – Reg 4 only relevant to content of returns, did not qualify the primary obligation to deduct under section 61(1) or place a limit on the records which HMRC could reasonably require to see to confirm accuracy of return – appeal dismissed. Related appeal against cancellation of gross payment status also dismissed
Judges:
Poole J
Citations:
[2012] UKFTT 205 (TC)
Links:
Jurisdiction:
England and Wales
Income Tax
Updated: 03 November 2022; Ref: scu.462609