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News - tax cases

12 April 2006
Categories: Tax cases , HMRC powers
Khan v Director of Assets Recovery Agency (SpC 523); Balloon Promotions Ltd (SpC 524)

A reasonable suspicion

The director of the Assets Recovery Agency issued assessments to income tax under Schedule D Case I and III and Class 4 National Insurance contributions on the taxpayer. The assessments were for the years 1998-99 to 2001-02 and were made under TMA 1970 s 29. The director could assume general Revenue powers under the Proceeds of Crime Act 2002 s 317(1) and raise 'Part 6' assessments if she had reasonable grounds to suspect that a person had income chargeable to tax in a chargeable period and that the income arose from his (or another's) criminal conduct. The basis for the director's suspicion was that the taxpayer had been charged with money-laundering offences in 2001 although the case against him had been stayed due to his ill health.
The Commissioners dealt with the following preliminary issues related to the appeal.

  • The Commissioners...

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