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First-tier Tribunal did not misdirect itself on the burden of proof for extended time limit assessments

By Mark McLaughlin, November 2023

The First-tier Tribunal did not make an error in its application of the burden of proof to assessments made under the extended time limit provisions, and if an appeal against an assessment to tax had been dismissed, HMRC did not have a burden to prove the loss of tax in making a penalty assessment. 

In 1999, the appellant became a lawyer and adviser to the well-known Formula 1 figure, Bernie Ecclestone, and his family. In 1999/2000, the appellant received £1.2m (payment 1). In 2000/01, the appellant received two further payments (both into an offshore account): £750,000 (payment 2) and £300,000 (payment 3). HM Revenue and Customs (HMRC) considered that the payments were taxable. The appellant appealed.  

The First-tier Tribunal (FTT) found that payment 1 was part of a remuneration package for the appellant’s services to the Ecclestone family. The payment was mentioned in a white space disclosure in the appellant

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