In TSD Design Development Engineering Ltd v HMRC (TC01941 – 19 April) a married couple controlled a small engineering company: the husband was the managing director while his wife was the company secretary. HMRC formed the opinion that the company had underdeclared profits which the couple had extracted from the business. They issued assessments and imposed penalties at the rate of 15% of the evaded tax. The company appealed. The First-tier Tribunal reviewed the evidence in detail and dismissed the appeal. Judge King observed that ‘it is clear from the cases that a default by directors can and should be assessed to tax in a company.’
Why it matters: Where a company has underdeclared takings which appear to have been extracted by its directors HMRC will normally issue assessments under...
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In TSD Design Development Engineering Ltd v HMRC (TC01941 – 19 April) a married couple controlled a small engineering company: the husband was the managing director while his wife was the company secretary. HMRC formed the opinion that the company had underdeclared profits which the couple had extracted from the business. They issued assessments and imposed penalties at the rate of 15% of the evaded tax. The company appealed. The First-tier Tribunal reviewed the evidence in detail and dismissed the appeal. Judge King observed that ‘it is clear from the cases that a default by directors can and should be assessed to tax in a company.’
Why it matters: Where a company has underdeclared takings which appear to have been extracted by its directors HMRC will normally issue assessments under...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
.jpg?sfvrsn=335a554c_0 "300 x 250 (MPU)")