In Seacourt Developments Ltd v HMRC (TC02198 – 4 September) HMRC formed the opinion that a property development company (S) had failed to account for PAYE and NIC on substantial payments to employees and had failed to deduct tax from payments to subcontractors. They issued determinations under the PAYE and CIS regulations and SSCTFA 1999 and imposed penalties under TMA 1970 s 98A(4) mitigated by 50%. S appealed. The First-tier Tribunal reviewed the evidence in detail and observed that two accountancy firms had resigned as S’s auditors and had qualified their opinions concerning S’s accounts. Judge Berner observed that ‘in a case of this nature where so little underlying information has been provided by the taxpayer it is of course the case that the assessments made by HMRC will not be correct. They are merely estimates. But that does not mean they must be...
