Onillon v Revenue and Customs (INCOME TAX/CORPORATION TAX : Penalty) [2018] UKFTT 33 (TC) (30 January 2018)

Onillon v Revenue and Customs (INCOME TAX/CORPORATION TAX : Penalty) [2018] UKFTT 33 (TC) (30 January 2018)

The Tribunal found that although the appellant did not take the formal corrective action required by the follower notice, it was reasonable in all the circumstances for him not to have done so. The appellant relied on advice from his accountant, who contacted HMRC and was told no further action was required. The...

Source-derived case information.

Citation
[2018] UKFTT 33 (TC)
Parties
Appellant: Emmanuel Onillon; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
30 January 2018
Procedural Posture
Income Tax/corporation Tax Penalty Appeal / First Tier Tribunal (tax) Substantive Decision
Outcome
Appeal allowed
Legal Topics
Follower Notice Penalty, Finance Act 2014, Reasonable Excuse, Corrective Action, Tax Avoidance Schemes
Tax Law Follower Notice Penalty Finance Act 2014 Reasonable Excuse Corrective Action Tax Avoidance Schemes

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Parties

Emmanuel Onillon

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

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

Legal Issues

  1. 1 Whether the appellant failed to take necessary corrective action in response to a follower notice under the Finance Act 2014
  2. 2 Whether it was reasonable in all the circumstances for the appellant not to take corrective action
  3. 3 Whether the penalty imposed was correctly calculated and whether further reduction for cooperation was warranted

Ratio Decidendi

The Tribunal found that although the appellant did not take the formal corrective action required by the follower notice, it was reasonable in all the circumstances for him not to have done so. The appellant relied on advice from his accountant, who contacted HMRC and was told no further action was required. The Tribunal accepted this evidence and concluded that the appellant acted reasonably, thus the penalty should not be imposed.

Court Disposition

Appeal allowed

Orders

  • The penalty assessment of £78,026.76 is cancelled.