Wharton v Revenue and Customs (INCOME TAX/CORPORATION TAX : Penalty) [2018] UKFTT 21 (TC) (16 January 2018)

Wharton v Revenue and Customs (INCOME TAX/CORPORATION TAX : Penalty) [2018] UKFTT 21 (TC) (16 January 2018)

HMRC's failure to consider special reduction was a flaw, but the absence of tax liability is not a special circumstance under the statutory scheme; penalties imposed were lawful and proportionate, and no reduction was warranted.

Citation
[2018] UKFTT 21
Parties
Appellant: Mark Wharton; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
16 January 2018
Procedural Posture
Income Tax/corporation Tax Penalty Appeal / First Tier Tribunal (tax Chamber) Substantive Decision
Outcome
Appeal dismissed
Legal Topics
Income Tax, Self Assessment, Late Filing Penalties, Special Circumstances, Proportionality, Judicial Review
Tax Law Income Tax Self Assessment Late Filing Penalties Special Circumstances Proportionality Judicial Review

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Parties

Mark Wharton

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

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

Legal Issues

  1. 1 Whether daily and six-month late filing penalties under Schedule 55 Finance Act 2009 should be reduced or set aside due to lack of tax liability or special circumstances
  2. 2 Whether HMRC's failure to consider special reduction renders their decision flawed
  3. 3 Whether the penalties are disproportionate or unfair

Ratio Decidendi

HMRC's failure to consider special reduction was a flaw, but the absence of tax liability is not a special circumstance under the statutory scheme; penalties imposed were lawful and proportionate, and no reduction was warranted.

Court Disposition

Appeal dismissed

Orders

  • Penalties confirmed; no reduction or cancellation granted