When pursuing an appeal against any tax assessment, the burden of proof that such assessment is incorrect rests with the tax payer who is conducting such an appeal.

However, in the recent case ofGolamreza Qolaminejite (aka Anthony Cooper) v HMRC [2021]UKUT 118 (TCC), upon considering an appeal from the First Tier Tribunal (‘the FTT’), the Upper Tribunal held that the FTT had not properly considered the whole of the tax payer’s case when refusing his appeal upon the basis that he had not met the burden of proof required.

Tim Thompson of Kangs Solicitors outlines the circumstances of this case which may be of considerable consequence. 

Kangs Solicitors has a proven track record spanning more than twenty years of successfully representing clients pursuing tax appeals through Tribunals and Courts of every nature and we are top ranked by both the leading legal directories Chambers UK and the Legal 500.

Our team can be contacted for confidential and discrete advice as follows:

Tax Appeals Procedure | Kangs Tax Litigation Solicitors

If it is wished to appeal a decision of HMRC in relation to a tax assessment and/or any financial penalty imposed, an appeal may be pursued as follows.

  • Within thirty days of receipt of the assessment from HMRC a review of the decision may be requested by sending to HMRC a detailed explanation as to why the assessment is considered to be wrong, which will be considered by HMRC.  
  • If HMRC rejects the explanations proffered and upholds its original decision, a request may be submitted within thirty days for an independent review.
  • This review is conducted by a senior HMRC officer, not involved with the matter, who will make a further determination.
  • Should the review uphold the original decision application has to be made to the FTT for permission to appeal and, if granted, the appeal will be considered by a Judge, which may entail a formal Hearing.  
  • If the FTT also upholds the original decision, permission has to be sought to further appeal to the Upper Tribunal and, if granted, the appeal will be considered by a Judge which may involvea further Hearing.         

Decisions Which Can Be Appealed | Kangs Tax Tribunal Solicitors

Whilst HMRC are obliged to advise when an appeal may be pursued, assessment and /or penalties can be pursued relating to:

Direct tax, which includes:

  • Income Tax
  • PAYE
  • Corporation Tax
  • Capital Gains Tax
  • National Insurance Contributions
  • Statutory Sick Pay
  • Statutory Maternity Pay
  • Inheritance Tax.

Indirect tax which includes:

  • VAT
  • Excise Duty
  • Customs Duty.

The Case In Focus | Kangs Tax Law Solicitors

  • In the case of Golamreza Qolaminejite v HMRC [2021] UKUT 118 (TCC) the tax payer appealed to the FTT in respect of assessments and penalties relating to Income Tax and VAT  
  • HMRC had issued assessments based upon trading income which was taxable whilst the tax payer submitted that the monies received were loans and transfers from other accounts not subject to Income Tax and VAT.
  • The FTT was not satisfied that the tax payer had discharged his burden of proving his case and upheld the HMRC assessments.
  • The tax payer appealed to the Upper Tribunal on the grounds that the FTT had failed to consider the probability of HMRC’s case given that it had not advanced any evidence to support the alleged trading income leading to the assessment.
  • The Upper Tribunal remitted the case back to the FTT on the basis that it had not properly considered the whole of the case properly when finding that the taxpayer had not satisfied the burden of proof.

How Can We Assist You? | Kangs HMRC Tax Investigations Solicitors

Issues involving HMRC can be very confusing, worrying and daunting but are frequently resolved with a proactive approach.

Kangs Solicitors fields an experienced tax team accustomed to representing companies, directors and individuals in a vast array of tax matters.  

If you have, or anticipate receipt of, any tax assessment of any nature which you dispute then please do not hesitate to contact our team.

We welcome enquiries by telephone or email.

We provide an initial no obligation consultation from our offices in London, Birmingham and Manchester.

Alternatively, we provide initial consultations by telephone or video conferencing.

Contact:

Hamraj Kang
hkang@kangssolicitors.co.uk
07976 258171 | 020 7936 6396 | 0121 449 9888

Tim Thompson
tthompson@kangssolicitors.co.uk
020 7936 6396 0121 449 9888

John Veale
jveale@kangssolicitors.co.uk
0161 817 5020  | 0121 449 9888