A barrister failed to supply the taxman with all the information and documents demanded by a formal notice: and ended up having to pay penalties (on top of the tax due) of over £1 million!
Romie Tager, a barrister, had submitted his own tax returns and an Inheritance Tax return (following his father’s death) to HMRC. The tax inspectors were not happy that the returns were correct and complete. So they issued him with formal Information Notices in order to obtain further facts. Mr Tager only partially complied with the formal Notices: despite being given numerous opportunities to do so. HMRC’s patience finally ran out, and the tax officers eventually deployed a little used penalty power – allowing them to charge penalties of up to 100% of the tax in respect of a failure to supply the relevant items. Of course, he will still have to pay the tax, plus interest, due in respect of those tax returns. In his instance the penalties alone were over £1 million!
Mr Tager appealed against the notices to the Tax Tribunal. The Tribunal upheld the penalties in full. The Tribunal Judge said he had found it virtually “impossible” to understand why Tager had not appointed a tax adviser to deal with these issues for him.
Lynam Tax specialise in dealing with HMRC and are experts in the application of the Information Notices rules. If you need advice and help in a difficult Tax Enquiry call:
Paul Lynam: 0845 643 9997
Andrew Nutbrown: 07718 778710