In C Reid v HMRC (TC01134 – 19 May) HMRC imposed penalties for 1996/97 to 2003/04 under TMA 1970 s 95 at the rate of 45% of the evaded tax on an MC who had failed to maintain full records of his income.
The First-tier Tribunal upheld the penalties. (Appeals against estimated assessments for years before 1996/97 were allowed.)
Why it matters: Where someone who is self-employed has failed to maintain adequate records of his income HMRC are likely to impose penalties under TMA 1970 s 95.
The rate at which the penalties are imposed will depend on the size and gravity of the omissions the extent to which the taxpayer discloses the omissions and the extent to which the taxpayer co-operates with HMRC’s enquiries.
These abatements were considered at some length in the...
