The appellant did not submit tax returns for 2009/10 to 2012/13 inclusive, or give HM Revenue and Customs (HMRC) notice (under TMA 1970, s 7) that he was chargeable to income tax or capital gains tax (CGT) for those tax years.

HMRC opened an enquiry into the appellant’s tax position. During the enquiry, the appellant claimed that he was owed £600,000 in unpaid commission from an individual with whom he previously had business dealings. HMRC contended that those monies had been received, and had not been declared. HMRC spread the £600,000 over four years and concluded that the appellant received additional taxable income (subject to income tax and Class 4 National Insurance contributions (NIC)) of £150,000 in each of the four tax years 2009/10 to 2012/13.

HMRC also consulted Land Registry information on four properties of which the appellant had been registered as the proprietor. That information showed the