Patrick Dowds, director of Dowds Transport Limited, haulage business, disputed numerous HMRC penalty notices totalling £1.2m related to irregularities in his tax affairs for over 11 years.

The penalties included £690,871 in income tax, PAYE and national insurance contributions and £425,231 for unpaid VAT.

Dowds was also issued a penalty notice of £52,193 relating to the Taxes Management Act 1970 (TMA 1970).

Following an enquiry by HMRC into his tax affairs, HMRC issued a notice of enquiry into Dowd's self-assessment return for the year ending 5 April 2009.