Mr William Bate v Commissioners for Her Majesty's Revenue and Customs
Decision date: 11 January 2011
Neutral citation: [2011] UKFTT 39 (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 concerned HMRC amendments to partnership tax returns for 1998/99–2001/02 made by discovery assessments based on findings from a 2002/03 enquiry. The Tribunal held HMRC had properly made the discovery-based amendments and the appellant failed to produce contemporaneous evidence to show the unidentified receipts were confined to 2002/03. The appeals were dismissed and the amendments confirmed.
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
Findings made in the course of an enquiry into one year identifying unidentified receipts can support discovery-based assessments for earlier years in the absence of evidence to the contrary; the taxpayer bears the onus of producing contemporaneous documentation to show omitted receipts related only to the year of enquiry.
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 sympathy for practical difficulties obtaining bank records from a bank that had been taken over but observed a long period had been allowed for obtaining documentation; it also indicated that, had evidence shown the revised profits to be excessive, the assessments could have been reduced.