Patel v Revenue & Customs [2011] UKFTT 104 (TC)
[1]This is an application by Mr Harish Patel for the postponement of tax under assessment for the years 1989-90 to 2007-08 as set out in the attached schedule.[2]We were provided with a bundle of documents by HMRC which included copies of the relevant legislation, the assessments and correspondence between HMRC and Mr Patel’s accountants. Mr Amin provided a copy of a Statutory Declaration made by a Mr N A Patel, a Kenyan national, who is the brother-in-law of Mr Harish Patel.[3]The assessments, which were made under s 29 Taxes Management Act 1970 (“TMA”), were protective assessments made in respect of interest received from funds held in the name of Mr Harish Patel at a Jersey bank.[4]The issue for us to determine, in accordance with s 55 TMA is whether there are reasonable grounds for believing that the Appellant is overcharged to tax. It is also worth noting that s 55(6A) provides that “ notwithstanding the provisions of sections 11 and 13 of the TCEA 2007, the decision of the tribunal shall be final and conclusive .”[5]Mr Wetherall, for HMRC, told us that Mr Harish Patel had opened a Jersey bank account on 9 March 1997. Although this account was closed on 3 November 1997 another Jersey bank account was opened by Mr Patel on 3 November 1997.[6]In the circumstances we consider that there are reasonable grounds for believing that Mr Patel was overcharged to tax by the assessments for the years 1989-90 to 1995-96.[7]As such we determine that the tax due between 1989-90 to 1995-96 (i.e. that referred to as Case V interest in the schedule below) be postponed and allow the application to that extent.[8]However, the application, insofar as it relates to tax due between 1996-97 to 2007-08, is dismissed.[9]This document contains full findings of fact and reasons for the decision. The parties are referred to “Guidance to accompany a Decision from the First-tier Tribunal (Tax Chamber)” which accompanies and forms part of this decision notice. JOHN BROOKS TRIBUNAL JUDGE RELEASE DATE: 3 FEBRUARY 2011 Schedule Assessments Year Description Quantum Tax Due 1989-90 Case V Interest £20,000 £8,000 1990-91 Case V Interest £25,000 £10,000 1991-92 Case V Interest £30,000 £12,000 1992-93 Case V Interest £35,000 £14,000 1993-94 Case V Interest £40,000 £16,000 1994-95 Case V Interest £45,000 £18,000 1995-96 Case V Interest £50,000 £20,000 1996-97 Foreign Income £55,000 £22,000 1997-98 Foreign Income £60,000 £24,000 1998-99 Foreign Income £65,000 £26,000 1999-00 Foreign Income £70,000 £25,279.49 2000-01 Foreign Income £75,000 £26,846.58 2001-02 Foreign Income £45,000 £15,688.62 2002-03 Foreign Income £20,000 £6,327.26 2003-04 Foreign Income £20,000 £7,153.64 2004-05 Foreign Income £25,000 £10,000 2005-06 Foreign Income £25,000 £10,000 2006-07 Foreign Income £25,000 £10,000 2007-08 Foreign Income £25,000 £10,000