Porter v The Commissioner For Revenue and Customs (INCOME TAX/CORPORATION TAX : Penalty) [2016] UKFTT 401 (TC) (07 June 2016)

Porter v The Commissioner For Revenue and Customs (INCOME TAX/CORPORATION TAX : Penalty) [2016] UKFTT 401 (TC) (07 June 2016)

Appellant had a reasonable excuse for late submission of partnership and personal returns due to exclusion from business records and reliance on accountants. Penalties for late submission are cancelled. For late payment, appellant’s ability to access funds was severely restricted by divorce circumstances, but some modest capital was available; penalty should be recalculated accordingly.

Citation
[2016] UKFTT 401 (TC)
Parties
Appellant: Eugena Porter; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
07 June 2016
Procedural Posture
Income Tax/corporation Tax Penalty Appeal / Final Judgment at First Tier Tribunal (tax Chamber)
Outcome
Appeal allowed in part
Legal Topics
Income Tax, Corporation Tax, Penalties, Late Submission, Late Payment, Reasonable Excuse, Special Circumstances
Tax Law Income Tax Corporation Tax Penalties Late Submission Late Payment Reasonable Excuse Special Circumstances

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Parties

Eugena Porter

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Income Tax/corporation Tax Penalty Appeal / Final Judgment at First Tier Tribunal (tax Chamber)

Legal Issues

  1. 1 Whether appellant had a reasonable excuse for late submission of personal and partnership tax returns
  2. 2 Whether appellant had a reasonable excuse for late payment of tax
  3. 3 Whether penalties should be mitigated or cancelled due to special circumstances

Ratio Decidendi

Appellant had a reasonable excuse for late submission of partnership and personal returns due to exclusion from business records and reliance on accountants. Penalties for late submission are cancelled. For late payment, appellant’s ability to access funds was severely restricted by divorce circumstances, but some modest capital was available; penalty should be recalculated accordingly.

Court Disposition

Appeal allowed in part

Orders

  • Penalties for late submission of partnership and personal returns cancelled
  • Penalty for late payment to be recalculated based on available modest capital and restricted access to assets