Jonathan David Ltd v Revenue & Customs [2009] UKFTT 289 (TC) (28 July 2009)

Jonathan David Ltd v Revenue & Customs [2009] UKFTT 289 (TC) (28 July 2009)

The Tribunal found that the appellant had a reasonable excuse for the initial late return due to reliance on an accountant who was unexpectedly unavailable for exceptional reasons. However, after receiving the first penalty notice, the excuse ceased, and the appellant unreasonably delayed in remedying the defaults....

Source-derived case information.

Citation
[2009] UKFTT 289 (TC)
Parties
Appellant: Jonathan David Limited; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
28 July 2009
Procedural Posture
Appeal / First Tier Tribunal (tax) Decision
Outcome
Appeal allowed in part
Legal Topics
Construction Industry Scheme, CIS Penalties, Late Submission of Returns, Reasonable Excuse, Taxes Management Act 1970 S 118(2)
Tax Law Construction Industry Scheme CIS Penalties Late Submission of Returns Reasonable Excuse Taxes Management Act 1970 S 118(2)

Source-derived case record

Summary, issues, holding and outcome

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Parties

Jonathan David Limited

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Appeal / First Tier Tribunal (tax) Decision

Legal Issues

  1. 1 Whether the appellant had a reasonable excuse for late submission of CIS returns under s 118(2) TMA 1970
  2. 2 Whether penalties for late returns should be set aside

Ratio Decidendi

The Tribunal found that the appellant had a reasonable excuse for the initial late return due to reliance on an accountant who was unexpectedly unavailable for exceptional reasons. However, after receiving the first penalty notice, the excuse ceased, and the appellant unreasonably delayed in remedying the defaults. Therefore, only the first penalty was set aside; the remaining penalties were confirmed.

Court Disposition

Appeal allowed in part

Orders

  • Penalty of £100 issued on 1 August 2008 set aside
  • Penalties totalling £500 issued on 29 August 2008 and 26 September 2008 confirmed