An appeal against discovery assessments and penalties was dismissed as the omission of a gain on the disposal of a property from the appellants’ tax returns for the relevant tax year was deliberate and the disclosure was prompted following an enquiry by HM Revenue and Customs.
The appellants (family members) carried on business in partnership as plumber’s merchants. HM Revenue and Customs (HMRC) opened an enquiry into the partnership’s tax return for the tax year 2010/11 in July 2012. HMRC’s enquiry subsequently included consideration of a property in Dubai.
A partner’s friend (H) had introduced the appellants to investments, which involved the off-plan purchase of properties. Funds provided to H by the appellants were used to purchase the Dubai property in 2006. HMRC’s position was that a relevant disposal of the property took place in 2008/09; that this was not declared by any of
