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Issue:
4927
/
Categories:
Comment & Analysis
, credit cards
, HMRC
, penalties
, reasonable care
, Admin
On best behaviour
Key points
- HMRC has to prove that the taxpayer’s behaviour leading to the tax underpayment was deliberate.
- There was no evidence that the company deliberately misled HMRC with regard to taxpayer’s use of credit card.
- The company had taken care in respect of loan write-off by appointing an adviser.
- Penalties legislation refers to a taxpayer’s carelessness not that of their adviser.
The recent case of Keighley and another (TC9023) heard at the First Tier Tribunal brings up points around deliberate and careless behaviour and how this affects the time limit in which an assessment can be raised as well as the penalties that may apply.
The case was multi-faceted and put three issues before the tribunal one concerning personal expenditure on company credit cards another relating to the withdrawal of petty cash and the third relating to loan relationships.
The credit card...
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