1992 – Inspector of Taxes accepts defeat at re-opened General Commissioner’s Appeal with savings of £18627.11


Summary of Case: June 1991

6.1 Appointed to act as accountants on 17 June 1991 by a sole trader operating an “Off Licence” trade in Brixton, South London

6.2 Accounts for the two years ended 28 February 1988 were prepared and submitted to H M Inspector of Taxes on 5 July 1991 together with a letter requesting the re-opening of the General Commissioners meeting, as the years 1988/89 & 1989/90 were already confirmed by the Commissioners.

6.3 On 5 July 1991 H M Inspector of Taxes (Lambeth District) were notified that the accounts for the three years ended 28 February 1991 would follow within four weeks and that relief was being sought under Section 33 Taxes Management Act 1970 for 1987/88 together with a new hearing for 1988/89 & 1989/90

6.4 On 17 October 1991, H M Inspector of Taxes agreed the S33 relief claim for 1987/88 but asserted that 1988/89 & 1989/90 were confirmed by the “General Commissioners”  and consequently only the Commissioners could re-open a case if there were valid grounds; and in their opinion, there was none! The accounts and tax computations were further agreed for 1990/91 and 1991/92

6.5 Representations were made to the “Clerk to the General Commissioners” (Second East Brixton Division) emphasising that the actions taken at the previous Commissioners meeting were “devoid of natural justice” and that “equity” would dictate a re-trial.

6.6 On 9 December 1991 a notice from the “Clerk to the General Commissioners” confirmed a new hearing on 14 January 1992 at the Law Society’s Hall, 113 Chancery Lane, London WC2. but also noted the “Inspector” wishes to oppose the application

6.7 James Wright-Anderson argued the case for the client on 14 January 1992, despite the opposing counter arguments from HM Inspector of Taxes; the case was adjourned within 90 minutes of hearing evidence, for the next hearing date.

6.8 A letter dated 20 January 1992 from the “General Commissioners of Income Tax Second East Brixton Division” confirmed that upon hearing evidence on 14 January 1992 the Commissioners agreed to grant the application for the years of assessment 1988/89 & 1989/90 as requested. The adjournment on 14 January 1992 was to give the Inspector time to agree the accounts.

6.9 All assessments for the five years 1987/88 to 1991/92 were therefore accepted by the Inspector of Taxes, and the original assessments of £28,821.99 was agreed at £10,194.88, thus saving the client a sum of £18,627.11. The good news was confirmed to the client in a letter dated 28 January 1992.