Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Income belongs to someone else

16 October 2017
Issue: 4620 / Categories: Tax cases

R Vowles (TC6123)

Liability to tax on dividends and car benefit

The taxpayer alleged that she had been in an abusive relationship and had accepted an appointment as the director of a company only because her ex-partner (W) had been disqualified as a director. It is noted in the decision that W was not called as a witness and therefore did not have the opportunity to state his version of events.

HMRC enquired into the taxpayer’s returns for the years 2007-08 to 2013-14. It concluded she had underdeclared her income. It amended the assessments for 2007-08 to 2008-09 and raised discovery assessments for 2009-10 to 2010-11. It also issued penalties.

The taxpayer appealed. She said she had not received the dividends from the company. The First-tier Tribunal accepted her account. The judge said although legally the shareholder it was clear she held the share on trust for her ex-partner. She had...

Only subscribers may read the full article

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.
back to top icon