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It has to be said that this is the latest in a long line of cases whereby HMRC has seen the Tribunal as little more than a rubber stamp for what they want to do and are then surprised when the Judge has a mind of his/her own.
Judge Richard Thomas is to applauded for his diligent, clear and legally correct analysis in this and other cases. It is hoped that this approach is seen at higher levels in due course.
The worrying thing here is that HMRC never seem to learn. Surely the Solicitor's Office in HMRC cannot ignore a stream of critical decisions and being accused of coming close to contempt of court process and procedures? Who is running the show there? Is their annual appraisal noting these multiple errors - errors, let us remember - that produce financial and reputational damage for the taxpayers - and suggesting perhaps more training?
No. This is HMRC. In that organisation, officers are more likely to be praised for raising penalties and revenue - or trying to - even when there are glaring holes in the process.
HMRC is unfit for purpose. This is a good example. Where was the oversight? Where was the quality control? Where was evidence of learning from earlier failures?
Yes; it's a great shame that there's only a handful of intelligent, independent minded judges in the FTT. The rest of them are pretty rubbish and it's no wonder that that makes HMRC a bit lazy with their evidence bundles etc. Another recent example of this is here:
http://financeandtax.decisions.tribunals.gov.uk//judgmentfiles/j10893/TC...
https://www.accountancydaily.co/cch_uk/cln/news_007858_pantelli
"HMRC unfit for purpose"? surely not. After all, their chief has just been awarded a knighthood.
Perhaps we should all be asking what their "purpose" actually is?
What ought clearly and indisputably to be remembered by HMRC and any Appellant is such matters as this last case depend upon Statutory law; and nothing else.
HMRC believe they can sort of invent rules as they go along. Invariably, they arise from assumptions that they, HMRC are right. When we now too often they are wrong!
In law, one is compelled to research (An Audit Trail detailing, chronologically, the series of events) from which they can assert their case is fully supported by Prima Facie evidence; or you like facts.
Accountants dealing with arguments over HMRC surface determination of error/s arising from TMA, ICTA, VATA, et al must accordingly quasi-lawyers.
I already smell a whiff in the air of multiple dissension between HMRC and TAX/VAT Payers arising from MTDfb...
Mainly since no one at HMRC I have spoken to and no software provider on the approved list of developers enjoys absolute clarity on expected outputs and precisely what must be adhered to.
For example, the dearth of both full-blown bookkeeping packages and Bridging Software, able to accurately and correctly manage VAT Margin Scheme traders' affairs is frightening. Particularly when one bothers to research the putative number of registered traders compelled by VATA to adopt such scheme.
Secondhand Furniture, Antiques, collectibles:
______________________
" There are some 3,724 businesses employing 27,183 people Revenue £2.9 Billion.
(Ibis world, 2017)."
https://www.ibisworld.co.uk/industry-trends/market-research-reports/whol...
Used Car Traders:
_____________
"In 2017, over 8.1 million used cars were traded in the United Kingdom according to the SMMT, through dealerships, private sales and auctions. Approximately 35% are nine years old or older. Only vehicles sold through dealerships and auction houses are included in the industry. Although significant, neither private-to-private nor business-to-business sales count towards industry revenue. Cars sold through private sales are typically much cheaper and older than those sold through dealerships. Trends in used car sales typically lag behind trends in new car sales. Over 65% of used cars sold are petrol cars, as older cars are more likely to run on petrol. The dominance of used petrol cars has declined over the past five years with sales of used diesel vehicles and AFVs on the rise. "
Jewellery & Watch Stores:
______________
" Market Size: £5.8 Billion:
Employment: 43,769
Number of businesses: 4,182"
Errata:
Second Para. Should read "When we know too..."
I have given up trying to edit my posts, as invariably, post edit, the system refuses site access!
And my post sort of vanishes!