HMRC v R Tooth

In HMRC v R Tooth [2019] EWCA Civ 826 (15 May 2019) the Court of Appeal found that a discovery assessment was invalid.

Mr Tooth had appealed against a discovery assessment issued by HMRC in relation to his participation in a failed avoidance scheme known as the Romangate scheme. Both the FTT and the UT had found that the discovery assessment was invalid.

There were two issues: whether HMRC had made a discovery; and whether Mr Tooth had acted deliberately in submitting a self-assessment which was insufficient.

The Court of Appeal noted that HMRC had first sought to address the insufficiency of tax in Mr Tooth’s return under TMA 1970 Sch 1A. However following the Supreme Court’s decision in Cotter [2013] UKSC 69 Mr Tooth’s adviser had sent a letter to HMRC in March 2014 explaining that the decision meant that this was not the correct approach. HMRC had...

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