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 tribunal found that the tax assessments for 2008/09 and 2009/10 were valid as the appellant failed to notify chargeability within the statutory period, and she did not provide evidence to displace the assessed figures. Penalties for late notification for those years were invalid as HMRC failed to properly notify the appellant. Penalties for late payment for 2010/11 and 2011/12 were upheld as the appellant's ignorance of her obligations did not constitute a reasonable excuse. The tribunal had no jurisdiction to consider appeals against interest charged under Section 86 TMA 1970.

Citation
[2016] UKFTT 311 (TC)
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
Outcome
Appeal allowed in part, dismissed in part.
Legal Topics
Income Tax, Corporation Tax, Late Submission of Tax Returns, Penalties for Late Payment, Reasonable Excuse, Appeal Jurisdiction, Interest on Late Payment
Tax Law Income Tax Corporation Tax Late Submission of Tax Returns Penalties for Late Payment Reasonable Excuse Appeal Jurisdiction Interest on Late Payment

Case Brief

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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

Legal Issues

  1. 1 Whether the appellant is liable for tax assessments for 2008/09 and 2009/10 under Section 36 TMA 1970
  2. 2 Whether penalties for late notification of chargeability for 2008/09 and 2009/10 under Schedule 41 Finance Act 2008 were properly notified and valid
  3. 3 Whether penalties for late payment of tax for 2010/11 and 2011/12 under Schedule 56 Finance Act 2009 are valid and if a reasonable excuse exists

Ratio Decidendi

The tribunal found that the tax assessments for 2008/09 and 2009/10 were valid as the appellant failed to notify chargeability within the statutory period, and she did not provide evidence to displace the assessed figures. Penalties for late notification for those years were invalid as HMRC failed to properly notify the appellant. Penalties for late payment for 2010/11 and 2011/12 were upheld as the appellant's ignorance of her obligations did not constitute a reasonable excuse. The tribunal had no jurisdiction to consider appeals against interest charged under Section 86 TMA 1970.

Court Disposition

Appeal allowed in part, dismissed in part.

Orders

  • Penalties for late notification of chargeability for 2008/09 (£1,435.61) and 2009/10 (£2,384.47) are cancelled.
  • Tax assessments for 2008/09 (£7,178.05) and 2009/10 (£11,922) are confirmed.