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News - tax case

26 April 2006
Categories: Tax cases
Inzani (SpC 529)

Negligent director

In November 1998 the appellant established a company which provided bus drivers for bus companies. Its only customer was L. As the appellant company did not have a bank account it asked L to pay the employees' wages on its behalf by cheque. No invoices were issued and employees' worksheets apart few records were maintained. The payroll was outsourced to a bank. No PAYE and NI was paid to the Revenue between April and November 1999 although the drivers were paid. The company went into liquidation in November 1999 and the director was disqualified from being a company director.
HMRC issued a personal liability notice on the appellant in respect of unpaid Class 1 NI on the ground that failure to pay was attributable to his fraud or neglect.
The Special Commissioner agreed that the appellant's neglect had been the reason for...

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