Catal v Revenue and Customs (INCOME TAX/CORPORATION TAX : Appeal) [2016] UKFTT 311 (TC) (06 May 2016)

Catal v Revenue and Customs (INCOME TAX/CORPORATION TAX : Appeal) [2016] UKFTT 311 (TC) (06 May 2016)

The assessments to tax for 2008/09 and 2009/10 were validly raised as the Appellant failed to notify chargeability within the statutory time limits, and she did not provide evidence to displace the assessed figures. Penalties for late notification for 2008/09 and 2009/10 were not properly notified and are therefore cancelled. Penalties for late payment for 2010/11 and 2011/12 were validly imposed as there was no reasonable excuse; ignorance of the law is not a reasonable excuse. Interest is not appealable.

Citation
[2016] UKFTT 311
Parties
Appellant: Funda Catal; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
06 May 2016
Procedural Posture
Income Tax/corporation Tax Appeal / First Tier Tribunal (tax Chamber) Substantive Decision After Hearing
Outcome
Partially allowed
Legal Topics
Income Tax, Corporation Tax, Late Submission of Tax Returns, Penalties for Late Payment, Reasonable Excuse, Appeal Procedure, Interest on Late Payment
Tax Law Income Tax Corporation Tax Late Submission of Tax Returns Penalties for Late Payment Reasonable Excuse Appeal Procedure Interest on Late Payment

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 5 Authorities cited 11 Party arguments 2 Amounts and remedies 7
Sign in to unlock

Parties

Funda Catal

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Income Tax/corporation Tax Appeal / First Tier Tribunal (tax Chamber) Substantive Decision After Hearing

Legal Issues

  1. 1 Whether the assessments to tax for 2008/09 and 2009/10 were validly raised under Section 36 Taxes Management Act 1970
  2. 2 Whether penalties for late notification of chargeability for 2008/09 and 2009/10 were properly notified and valid under Schedule 41 to Finance Act 2008
  3. 3 Whether penalties for late payment of tax for 2010/11 and 2011/12 under Schedule 56 to Finance Act 2009 were valid and whether there was a reasonable excuse

Ratio Decidendi

The assessments to tax for 2008/09 and 2009/10 were validly raised as the Appellant failed to notify chargeability within the statutory time limits, and she did not provide evidence to displace the assessed figures. Penalties for late notification for 2008/09 and 2009/10 were not properly notified and are therefore cancelled. Penalties for late payment for 2010/11 and 2011/12 were validly imposed as there was no reasonable excuse; ignorance of the law is not a reasonable excuse. Interest is not appealable.

Court Disposition

Partially allowed

Orders

  • Appeal against penalties for late notification of chargeability for 2008/09 (£1,435.61) and 2009/10 (£2,384.47) allowed; penalties cancelled.
  • Appeal against tax assessments for 2008/09 (£7,178.05) and 2009/10 (£11,922) dismissed; assessments confirmed.