Liban Awdon v The Commissioners for HMRC
Decision date: 4 April 2023
Neutral citation: [2023] UKFTT 361 (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
This appeal by Mr Liban Awdon against HMRC closure notices, discovery assessments and penalties was heard in his absence after he failed to attend; HMRC's calculations based on bank records (with a 5% uplift for unbanked cash and a continuity presumption for later years) were accepted. The Tribunal found HMRC had validly raised the notices and assessments, that Mr Awdon failed to discharge the burden to show different figures, and upheld the penalties for carelessness (with a 25% reduction applied).
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
Where a taxpayer keeps incomplete records, HMRC may reasonably calculate taxable income from available bank statements, allow probable expenses on the balance of probabilities, and apply an uplift for unbanked cash (including using the taxpayer’s own earlier statements); once HMRC has met its initial burden in that way, the burden shifts to the taxpayer to provide evidence to show the assessments are incorrect.
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 indicated it may proceed with a hearing in the taxpayer’s absence where directions warned that would occur, and that it can permit and consider a late written statement if the other party is given opportunity to reply. The Tribunal also viewed review of HMRC’s identification of “special circumstances” as constrained to assessing whether HMRC’s decision was flawed in a judicial‑review sense.