Bushell v Revenue & Customs [2010] UKFTT 577 (TC) (16 November 2010)

Bushell v Revenue & Customs [2010] UKFTT 577 (TC) (16 November 2010)

Penalties for late CIS returns are only exigible where the appellant was a person who 'makes payments' under construction contracts during the relevant periods. Reliance on agents does not constitute a reasonable excuse unless exceptional circumstances are proven. Reasonable excuse existed for certain periods due to HMRC advice and agent involvement, limiting penalties to specific months. Proportionality and Human Rights arguments are reserved pending further tribunal decisions.

Citation
[2010] UKFTT 577
Parties
Appellant: Giles Bushell; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
16 November 2010
Procedural Posture
Appeal / First Tier Tribunal (tax) Decision
Outcome
Appeal allowed in part; penalties reduced.
Legal Topics
Construction Industry Scheme, Income Tax, Corporation Tax, Penalties for Late Returns, Reasonable Excuse, Reliance on Agents, Proportionality, Human Rights Law
Tax Law Construction Industry Scheme Income Tax Corporation Tax Penalties for Late Returns Reasonable Excuse Reliance on Agents Proportionality +1 more

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Parties

Giles Bushell

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Appeal / First Tier Tribunal (tax) Decision

Legal Issues

  1. 1 Obligation to deliver monthly CIS returns when no payments made
  2. 2 Extent of obligation to deliver nil return under Regulation 4(10)
  3. 3 Whether reasonable excuse exists for failure to deliver returns

Ratio Decidendi

Penalties for late CIS returns are only exigible where the appellant was a person who 'makes payments' under construction contracts during the relevant periods. Reliance on agents does not constitute a reasonable excuse unless exceptional circumstances are proven. Reasonable excuse existed for certain periods due to HMRC advice and agent involvement, limiting penalties to specific months. Proportionality and Human Rights arguments are reserved pending further tribunal decisions.

Court Disposition

Appeal allowed in part; penalties reduced.

Orders

  • Penalties reduced to £700 for 2007/8 Period 7, £600 for 2007/8 Period 8, £500 for 2007/8 Period 9, £100 for 2008/9 Period 9.
  • Appellant permitted to make further representations on proportionality within 21 days of decision release; appeal stayed pending Upper Tribunal decision if proportionality argued.