The disclosure of losses arising from a failed tax avoidance scheme in the wrong boxes of the taxpayer’s tax return did not amount to a deliberate inaccuracy in the return. 

Summary 

The disclosure of losses from a failed tax avoidance scheme in the wrong boxes of the taxpayer’s tax return did not amount to a deliberate inaccuracy in the return. 

Background 

In January 2009, the taxpayer (T) entered into a tax avoidance scheme on the understanding that employment-related losses would be generated for 2008/09, which could be carried back to 2007/08. 

When T’s accountant prepared his tax return for 2007/08 using commercial software, the accountant was unable to access a box on the return to enter the income loss. Following advice from the software firm, the employment-related loss was included on