|[Home] [Databases] [World Law] [Multidatabase Search] [Help] [Feedback]|
First-tier Tribunal (Tax)
You are here: BAILII >> Databases >> First-tier Tribunal (Tax) >> Cairns v Revenue & Customs  UKFTT 67 (TC) (30 March 2009)
Cite as:  WTLR 793,  UKFTT 00008 (TC),  STI 1801,  STC (SCD) 479,  UKFTT 67 (TC)
[New search] [Context] [View without highlighting] [Printable RTF version] [Help]
Cairns v Revenue & Customs  UKFTT 67 (TC) (30 March 2009)
Inheritance Tax; administration and collection; executor as personal representative delivering account of heritable property of deceased; whether account incorrect; whether incorrect account fraudulently or negligently delivered; failure to declare that value of property was a provisional estimate; penalty; powers of the Tribunal; mitigation; Inheritance Tax Act 1984 sections 216, 247, 249 and 253
GORDON DOUGLAS CAIRNS (PERSONAL REPRESENTATIVE
OF VICTOR DOUGLAS EUSTACE WEBB (Decd) Applicant
- and –
Special Commissioner: J GORDON REID Q.C., F.C.I.Arb
Sitting in public in Edinburgh on 6 November 2008
for the Applicant J McArthur, Glllespie Macandrew LLP, Edinburgh
for the Defender C Ryder, Inspector of Taxes, HMRC
(1)....... the personal representatives of a deceased person ........
shall deliver to the Board an account specifying to the best of his knowledge and belief all appropriate property and the value of that property.
(3A) If the personal representatives, after making the fullest enquiries that are reasonably practicable in the circumstances, are unable to ascertain the exact value of any particular property, their account shall in the first instance be sufficient as regards that property if it contains-
(a) a statement to that effect
(b) a provisional estimate of the value of the property; amd
(c) and undertaking to deliver a further account of it as soon as its value is ascertained
(1) If any person liable for any tax on the value transferred by a chargeable transfer fraudulently or negligently delivers, furnishes or produces to the Board any incorrect account, information or document, he shall be liable to a penalty not exceeding the difference mentioned in subsection (2) below.
(2) The difference referred to in subsection (1) above is the amount by which the tax for which that person is liable exceeds what would be the amount of the that tax if the facts wee as shown in the account, information or document
(1) All proceedings for the recovery of penalties under this Part of the Act shall be commenced by the Board or, in Scotland, by the Board or the Lord Advocate.
(2) Any such proceedings may be commenced either before the Special Commissioners or in the High court or the Court of Session and shall, if brought in the High Court, be deemed to be civil proceedings by the Crown .....
(4) Proceedings under this section before the Special Commissioners shall be by way of information in writing made to them, and upon summons issued by them to the defendant (or defender) to appear before them at a time and place stated in the summons, and they shall hear and determine each case in a summary way.
Commencement of Proceedings.
Relevancy and Specification of the Initiating Documents.
"I have made the fullest enquiries that are reasonably practicable in the circumstances to find out the open market value of all the items shown in this account. The value of items shown in boxes [Stonefield was not included here] are provisional estimates which are based on all the information available to me at this time. I will tell IR Capital Taxes the exact value(s) as soon as I know it and I will pay any additional tax and interest that may be due."
It would have been prudent to describe the value attributed to Stonefield as a provisional estimate. The failure to do so was, in the circumstances, careless.