The Court upholds HMRC’s decision to issue a tax notice of £90,393 to a company but downgraded the £61,163 penalties as it was ‘careless’ and not deliberate
The First Tier Tribunal (FTT) ruled in favour of HMRC and upheld the closure notices and the majority of the discovery assessments issued by the tax authority to JT Quinns Limited and its director Queen Rose Green worth £207,475.58 overall in respect of incorrect tax returns.
However, having decided the taxpayer had acted ‘carelessly rather than deliberately’ the tribunal allowed appeals against certain discovery assessments issued to both JT Quinns and Green as they were issued ‘out of time’ meaning that they were classed as invalid under paragraph 46 of the Taxes Management Act (TMA) 1970.
In February 2014, HMRC opened an enquiry into the tax returns of JT Quinns and Green for the year ended August 2012. The tax authority requested information from the company and Green such as bank statements, however they were not provided so HMRC issued both with Schedule 36 notices under Finance Act 2008.
