Fane v Revenue & Customs [2011] UKFTT 210 (TC) (25 March 2011)

Fane v Revenue & Customs [2011] UKFTT 210 (TC) (25 March 2011)

The appellant failed to exercise reasonable care in completing his tax return by misunderstanding his payslip and not seeking clarification, thus the penalty was correctly imposed. HMRC's decision not to suspend the penalty was not flawed, as the error was a one-off event and no practical suspension condition could be set to prevent recurrence.

Citation
[2011] UKFTT 210 (TC)
Parties
Appellant: Anthony Fane; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
25 March 2011
Procedural Posture
Tax Penalty Appeal / First Tier Tribunal (tax), Substantive Decision
Outcome
Appeal dismissed
Legal Topics
Income Tax, Penalties, Careless Inaccuracy, Suspension of Penalty, Judicial Review Principles
Tax Law Income Tax Penalties Careless Inaccuracy Suspension of Penalty Judicial Review Principles

Case Brief

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Parties

Anthony Fane

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Tax Penalty Appeal / First Tier Tribunal (tax), Substantive Decision

Legal Issues

  1. 1 Whether the appellant was careless in completing his 2008-2009 income tax return under Schedule 24 Finance Act 2007
  2. 2 Whether HMRC's decision not to suspend the penalty under paragraph 14 Schedule 24 Finance Act 2007 was flawed

Ratio Decidendi

The appellant failed to exercise reasonable care in completing his tax return by misunderstanding his payslip and not seeking clarification, thus the penalty was correctly imposed. HMRC's decision not to suspend the penalty was not flawed, as the error was a one-off event and no practical suspension condition could be set to prevent recurrence.

Court Disposition

Appeal dismissed

Orders

  • Penalty for careless inaccuracy for 2008-2009 upheld
  • HMRC's refusal to suspend penalty upheld