Ali v Revenue & Customs (INCOME TAX/CORPORATION TAX : Penalty) [2018] UKFTT 738 (TC) (17 December 2018)

Ali v Revenue & Customs (INCOME TAX/CORPORATION TAX : Penalty) [2018] UKFTT 738 (TC) (17 December 2018)

The appellant did not have a reasonable excuse for the late filing or late payment as his circumstances—lack of knowledge, reliance on solicitors, misplaced mail, and health issues—did not meet the statutory or objective test for reasonable excuse, nor did they constitute special circumstances warranting penalty reduction. The penalties were correctly imposed under the relevant legislation.

Citation
[2018] UKFTT 738
Parties
Appellant: Raja Ali; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
17 December 2018
Procedural Posture
Income Tax Penalty Appeal / First Tier Tribunal (tax Chamber) Decision
Outcome
Appeal dismissed
Legal Topics
Income Tax, Self Assessment, Late Filing Penalties, Late Payment Penalties, Reasonable Excuse, Special Circumstances
Tax Law Income Tax Self Assessment Late Filing Penalties Late Payment Penalties Reasonable Excuse Special Circumstances

Case Brief

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Parties

Raja Ali

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

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

Legal Issues

  1. 1 Whether the appellant had a reasonable excuse for late filing of self-assessment tax return and late payment of tax for the year ending 5 April 2014
  2. 2 Whether penalties imposed under Schedule 55 and 56 Finance Act 2009 should be reduced or cancelled due to reasonable excuse or special circumstances

Ratio Decidendi

The appellant did not have a reasonable excuse for the late filing or late payment as his circumstances—lack of knowledge, reliance on solicitors, misplaced mail, and health issues—did not meet the statutory or objective test for reasonable excuse, nor did they constitute special circumstances warranting penalty reduction. The penalties were correctly imposed under the relevant legislation.

Court Disposition

Appeal dismissed

Orders

  • The £800 late filing penalties and £116 late payment penalties are confirmed.