This is an appeal against penalties imposed after the failure of an avoidance scheme involving remuneration trusts. The interesting point is the discussion in paragraphs 42 onwards about what constitutes deliberate behaviour in the context of an avoidance scheme.
The taxpayers argued that they could not be expected to understand the technical issues and had relied on the advice of their accountants. The tribunal did not accept this. In a case like this, where there was a claim for expenses which were not paid and which there was no obligation to pay, the taxpayers must take responsibility for the entries on their returns. There was no doubt that they had deliberately included a deduction to which they were not entitled and thus liable to a penalty. The decision is a useful reminder that a tribunal in a penalty appeal will expect taxpayers to ensure that the factual basis of their tax returns is correct even if they don't understand all the technicalities.