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 formally amend his return or notify HMRC as required by the follower notice, it was reasonable in all the circumstances for him not to have taken the necessary corrective action, given the communications from HMRC and the appellant's reliance on professional advice. The appeal was allowed and the penalty was cancelled.

Citation
[2018] UKFTT 33
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 Follower Notice Penalty Appeal / First Tier Tribunal (tax) Final Judgment
Outcome
Appeal allowed
Legal Topics
Income Tax, Corporation Tax, Tax Avoidance Schemes, Follower Notice Penalty, Finance Act 2014
Tax Law Income Tax Corporation Tax Tax Avoidance Schemes Follower Notice Penalty Finance Act 2014

Case Brief

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Parties

Emmanuel Onillon

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Income Tax Follower Notice Penalty Appeal / First Tier Tribunal (tax) Final Judgment

Legal Issues

  1. 1 Whether the appellant failed to take necessary corrective action as required by a follower notice under 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 reduction for co-operation should apply

Ratio Decidendi

The Tribunal found that although the appellant did not formally amend his return or notify HMRC as required by the follower notice, it was reasonable in all the circumstances for him not to have taken the necessary corrective action, given the communications from HMRC and the appellant's reliance on professional advice. The appeal was allowed and the penalty was cancelled.

Court Disposition

Appeal allowed

Orders

  • Penalty cancelled
  • No corrective action required retrospectively