Scope of tribunal’s jurisdiction

In his 2003-04 tax return the taxpayer claimed substantial losses. He calculated he was due a repayment of about £400 000. In response to the question on the return at box 20.1 ‘Have you already had any 2003-04 tax refunded or set off by your Inland Revenue office?’ he disclosed the repayment of £20 000. After a lengthy enquiry HMRC told the taxpayer in April 2018 he owed some £25 000 which included the £20 000 previously been repaid to him.

After reviewing the documents the taxpayer said that he had never received that refund and consequently owed the net amount - £5 000. It transpired that HMRC could not produce any evidence to showed that it had repaid the £20 000 to the taxpayer - nor indeed could the taxpayer who said he had ticked the box on the...