Stirling Jewellers (Dudley) Ltd v HMRC [2020] UKUT 245 (TCC) (13 August 2020): Where HMRC establishes that a business has underdeclared profits for a year it relies on an important concept – the presumption of continuity – to say that unless there are good reasons otherwise there were similar under declarations in earlier years. Tax advisers representing clients being investigated will try to undermine the presumption by showing that the business was being run in a different way in earlier years and so there is no pattern of continuity. This decision of the Upper Tribunal has some valuable observations about the presumption at paras 88 onwards which will be of interest to all who practice in this area.
S Jama v HMRC...
