Isaac Aboagye Frempong v The Commissioners for HMRC
Decision date: 1 November 2024
Neutral citation: [2024] UKFTT 999 (TC)
Overall AI summary confidence: high
Short overview
This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.
AI confidence in this short overview: high
HMRC issued discovery assessments for 2010/11–2013/14 alleging undeclared income; the Tribunal found there had been a valid discovery and that the inaccuracies in the Appellant’s returns were deliberate. The Tribunal upheld the assessments for 2010/11, 2011/12 and 2012/13, and amended the 2013/14 assessment to exclude £2,110 before upholding it; the appeal was dismissed. The Tribunal also granted HMRC’s anonymisation application.
Ratio decidendi
This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.
AI confidence in this ratio decidendi summary: high
The Tribunal applied a two-stage test for discovery assessments: the officer’s belief in an insufficiency of tax must be held subjectively and must be one which a reasonable officer could form. Deliberate inaccuracy was treated as requiring assessment of the taxpayer’s state of mind; substantial unexplained receipts supported by seized records and communications can justify finding deliberateness and thus bring the 20-year discovery window into play.
Obiter dicta
This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.
AI confidence in this obiter dicta summary: medium
The Tribunal noted that late explanations not advanced earlier and lacking corroboration are less persuasive, and that detailed digital records (spreadsheets, transaction references, web logs and online identities) can be cogent evidence of agent-like activity and receipt of commissions.