Davila v Revenue And Customs (INCOME TAX - late filing penalties) [2019] UKFTT 340 (TC) (30 May 2019)

Davila v Revenue And Customs (INCOME TAX - late filing penalties) [2019] UKFTT 340 (TC) (30 May 2019)

HMRC failed to prove, on the balance of probabilities, that a valid Notice to File was issued to Miss Davila under s8 TMA 1970. Without such notice, the statutory precondition for imposing late filing penalties was not met. Consequently, the penalties must be cancelled regardless of whether a reasonable excuse existed.

Citation
[2019] UKFTT 340 (TC)
Parties
Appellant: Karen Davila; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
30 May 2019
Procedural Posture
Income Tax Appeal (late Filing Penalties) / First Tier Tribunal (tax Chamber) Substantive Decision
Outcome
Appeal allowed
Legal Topics
Income Tax, Late Filing Penalties, Reasonable Excuse, Notice to File, Assessment of Penalties
Tax Law Income Tax Late Filing Penalties Reasonable Excuse Notice to File Assessment of Penalties

Case Brief

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Parties

Karen Davila

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Income Tax Appeal (late Filing Penalties) / First Tier Tribunal (tax Chamber) Substantive Decision

Legal Issues

  1. 1 Whether HMRC gave valid notice to file a tax return under s8 TMA 1970
  2. 2 Whether the taxpayer had a reasonable excuse for late filing
  3. 3 Whether penalties were properly assessed and notified under Schedule 55 Finance Act 2009

Ratio Decidendi

HMRC failed to prove, on the balance of probabilities, that a valid Notice to File was issued to Miss Davila under s8 TMA 1970. Without such notice, the statutory precondition for imposing late filing penalties was not met. Consequently, the penalties must be cancelled regardless of whether a reasonable excuse existed.

Court Disposition

Appeal allowed

Orders

  • Penalties for late filing imposed under paragraphs 3, 4, and 5 of Schedule 55 Finance Act 2009 are cancelled.