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Tax return errors were ‘deliberate’ for penalty purposes

By Mark McLaughlin, November 2020

Tax return claims for contributions into an offshore remuneration trust, where neither appellant made such payments or incurred liabilities to contribute, constituted inaccuracies in the tax returns leading to a loss of tax, which were deliberate for penalty purposes. 

The appellants (‘D’ and ‘P’) were self-employed associate dentists for a company and were paid gross monthly. The appellants became involved in a marketed tax avoidance arrangement involving an offshore ‘umbrella remuneration trust.’  

In P’s self-assessment return for the tax year 2012/13, she claimed tax relief for a large contribution to the remuneration trust. However, P did not make the contribution. The self-assessment returns

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