Philip Simpson successfully represented the taxpayer in the recent betting duty case Devine v. HMRC [2014] UKFTT 855 (TC).

HMRC had sought to assess the taxpayer to additional sums of betting duty on the basis that the taxpayer had deliberately understated takings on betting duty returns over a four-year period. HMRC had in addition levied penalties on the basis that the under-declarations were deliberate.

The taxpayer claimed that through following a professional gambler, he had made money by personal betting, and had, in effect, used this money to prop up his loss-making bookmakers’ business. Having heard the evidence of the taxpayer, the professional gambler, and two of the taxpayers’ employees, the First-tier Tribunal found that HMRC’s suspicions were unfounded. The assessments were reduced to nil, and were held in any event not to have been made to best judgment. The penalties were also set aside in full.

A copy of the decision may be found here.