For the latest tax cases and updates, this month we focus on the Carey ordinary residence case, appeal against penalty notices in PML, changes to travel and subsistence rules, plans for Irish patent box to give tax breaks for innovation and main object test over capital allowances in Lloyds Bank Leasing case
Case report: appeal against penalty notices allowed based on invalid information notice
In the recent case of PML Accounting Ltd v Revenue & Customs [2015] UKFTT 440 (TC), the argument centred around an appeal by PML against penalty notices issued under Finance Act 2008 (FA 2008), Sch 36, for failure to comply with an information notice dated 26 November 2012.
PML provided accounting, tax and corporate services to contractors and consultants. HMRC issued the information notice to verify whether PML’s client companies were managed service companies (MSCs) and if PML was an MSC provider as defined under the Income Tax (Earnings and Pensions) Act 2003, Pt 2, Ch 9.
The information notice was issued without prior approval by the tribunal and requested documentation for a sample of PML’s clients relating to the period from 6 April 2008 to 24 October 2012 by a deadline of 11 January 2013.
