Testa v Revenue & Customs [2013] UKFTT 151 (TC) (18 February 2013)

Testa v Revenue & Customs [2013] UKFTT 151 (TC) (18 February 2013)

HMRC's refusal to suspend the penalty was flawed because it was based on a blanket policy against suspension for 'one-off' errors and failed to consider the appellant's proposed condition on its merits. The Tribunal found that the proposed condition—having future tax returns submitted by a qualified professional—would help avoid future careless inaccuracies and thus met the statutory requirements for suspension.

Citation
[2013] UKFTT 151 (TC)
Parties
Appellant: David Testa; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
18 February 2013
Procedural Posture
Appeal Against Refusal to Suspend Penalty for Careless Inaccuracy in Self Assessment Tax Return / First Tier Tribunal (tax Chamber) Decision
Outcome
Appeal allowed
Legal Topics
Income Tax, Penalties for Careless Inaccuracy, Suspension of Penalties, Judicial Review Principles
Tax Law Income Tax Penalties for Careless Inaccuracy Suspension of Penalties Judicial Review Principles

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 5 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

David Testa

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Appeal Against Refusal to Suspend Penalty for Careless Inaccuracy in Self Assessment Tax Return / First Tier Tribunal (tax Chamber) Decision

Legal Issues

  1. 1 Whether HMRC's refusal to suspend the penalty for a careless inaccuracy in a self-assessment tax return was flawed under Schedule 24 Finance Act 2007
  2. 2 Whether a proposed suspension condition (use of a professional adviser for future returns) meets statutory requirements

Ratio Decidendi

HMRC's refusal to suspend the penalty was flawed because it was based on a blanket policy against suspension for 'one-off' errors and failed to consider the appellant's proposed condition on its merits. The Tribunal found that the proposed condition—having future tax returns submitted by a qualified professional—would help avoid future careless inaccuracies and thus met the statutory requirements for suspension.

Court Disposition

Appeal allowed

Orders

  • HMRC ordered to suspend the penalty imposed on the appellant under Schedule 24 Finance Act 2007
  • No jurisdiction at this stage to specify precise terms of suspension; indication given that a suitably qualified professional adviser should submit future returns