Rahman v Revenue & Customs (INCOME TAX - penalties for late payment) [2020] UKFTT 393 (TC) (07 October 2020)

Rahman v Revenue & Customs (INCOME TAX - penalties for late payment) [2020] UKFTT 393 (TC) (07 October 2020)

The appellant failed to demonstrate a reasonable excuse for late payment of tax, as inability to pay was not due to events outside his control and his circumstances did not amount to special circumstances. HMRC's refusal to reduce penalties was not flawed. Permission to appeal out of time was refused due to significant unexplained delay.

Citation
[2020] UKFTT 393
Parties
Appellant: Ata Ur Rahman; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
07 October 2020
Procedural Posture
Income Tax Penalty Appeal / First Tier Tribunal (tax Chamber) Decision on Appeal
Outcome
Appeal dismissed. Permission to appeal out of time refused.
Legal Topics
Income Tax, Penalties for Late Payment, Reasonable Excuse, Special Circumstances, Appeal Out of Time
Tax Law Income Tax Penalties for Late Payment Reasonable Excuse Special Circumstances Appeal Out of Time

Case Brief

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Parties

Ata Ur Rahman

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Income Tax Penalty Appeal / First Tier Tribunal (tax Chamber) Decision on Appeal

Legal Issues

  1. 1 Whether the appellant had a reasonable excuse for late payment of income tax under Schedule 56 Finance Act 2009
  2. 2 Whether HMRC's refusal to reduce penalties for special circumstances was flawed
  3. 3 Whether permission to appeal out of time should be granted

Ratio Decidendi

The appellant failed to demonstrate a reasonable excuse for late payment of tax, as inability to pay was not due to events outside his control and his circumstances did not amount to special circumstances. HMRC's refusal to reduce penalties was not flawed. Permission to appeal out of time was refused due to significant unexplained delay.

Court Disposition

Appeal dismissed. Permission to appeal out of time refused.

Orders

  • Fixed penalties for tax years 2012-13, 2013-14, 2015-16, 2016-17, and 2017-18 confirmed.