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CG Martin (TC4117)
The taxpayer sold books maps and memorabilia over the web. An enquiry into her tax returns led HMRC to conclude she had not included eBay income in her turnover.
The department said the omission was partly because the taxpayer did not keep proper books and records meaning her accounts had to be done from bank documents and diary entries.
The Revenue imposed a penalty on the basis her behaviour had been negligent. The taxpayer appealed.
The First-tier Tribunal agreed the taxpayer had been negligent.
She claimed as a reasonable excuse the stress caused by her husband’s financial difficulties and by her mother’s death.
The judge disagreed saying the taxpayer had managed during her period of distress to run a business with an annual turnover of about £177 000. It was not credible that she could be prevented by stress from submitting a complete and correct tax return.
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