Lorraine McLaren v Revenue & Customs (INCOME TAX - discovery assessments - no returns filed for relevant years) [2021] UKFTT 130 (TC)

FTT-Tax

Lorraine McLaren v Revenue & Customs (INCOME TAX - discovery assessments - no returns filed for relevant years)

[2021] UKFTT 130 (TC)

Notes: INCOME TAX - discovery assessments - ss 29, 34, 36 and 118 of Taxes Management Act 1970 - no returns filed for relevant years - information from police raid - interaction with reg 72 Income Tax (PAYE) Regulations 2003 - whether discovery of insufficiency -˜stale-™ - obiter dictum of Charlton re-considered - -˜danger-™ of judicial paraphrase per Lansdowne - the concept of -˜staleness-™ unsupported by statutory context, and unsupportable in the absence of judicial review jurisdiction - extended time limits - whether loss of tax brought about carelessly or deliberately - issue of quantification - whether assessments raised on proceeds of crime - frauds being -˜incidents-™ of a trade - elements of illegality cannot be founded upon to avoid tax - whether assessments stand good; yes - appeal allowed in part Â¬-“ but only in relation to assessments not defended by the respondents; appeal otherwise dismissed