Bentley v Revenue And Customs (INCOME TAX - follower notices) [2021] UKFTT 240 (TC) (30 June 2021)

Bentley v Revenue And Customs (INCOME TAX - follower notices) [2021] UKFTT 240 (TC) (30 June 2021)

The appellant's reliance on professional advice and confusion about the distinction between APNs and FNs did not amount to it being reasonable in all the circumstances not to take corrective action by the specified date. The statutory regime and binding authority (Comtek) preclude reduction of penalties for cooperation after assessment. The penalties were lawfully imposed and must be upheld.

Citation
[2021] UKFTT 240 (TC)
Parties
Appellant: Mr Michael Bentley; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
30 June 2021
Procedural Posture
Income Tax Penalty Appeal (follower Notices) / First Tier Tribunal (tax Chamber) Decision After Review Under Rule 41
Outcome
Appeal dismissed
Legal Topics
Income Tax, Follower Notices, Penalties, Corrective Action, Reasonable Excuse, Judicial Review, Accelerated Payment Notices
Tax Law Income Tax Follower Notices Penalties Corrective Action Reasonable Excuse Judicial Review Accelerated Payment Notices

Case Brief

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Parties

Mr Michael Bentley

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Income Tax Penalty Appeal (follower Notices) / First Tier Tribunal (tax Chamber) Decision After Review Under Rule 41

Legal Issues

  1. 1 Whether it was reasonable in all the circumstances for the appellant not to have taken the necessary corrective action in response to follower notices by the specified date
  2. 2 Whether the penalties imposed should be upheld or reduced

Ratio Decidendi

The appellant's reliance on professional advice and confusion about the distinction between APNs and FNs did not amount to it being reasonable in all the circumstances not to take corrective action by the specified date. The statutory regime and binding authority (Comtek) preclude reduction of penalties for cooperation after assessment. The penalties were lawfully imposed and must be upheld.

Court Disposition

Appeal dismissed

Orders

  • Penalties for failure to take corrective action in response to follower notices are upheld in the recalculated amounts (42% of denied advantage) for each relevant tax year.