Garcia v Revenue and Customs (INCOME TAX/CORPORATION TAX : Penalty) [2018] UKFTT 88 (TC) (16 February 2018)

Garcia v Revenue and Customs (INCOME TAX/CORPORATION TAX : Penalty) [2018] UKFTT 88 (TC) (16 February 2018)

Mr Garcia had a reasonable excuse for the late filing of the 2011-12 return and the 12-month penalty for the 2010-11 return during the period of homelessness following his redundancy in November 2012 until March 2013. However, he failed to demonstrate a continuing reasonable excuse for late filing after returning to settled accommodation. The Tribunal found no special circumstances warranting further reduction of penalties.

Citation
[2018] UKFTT 88 (TC)
Parties
Appellant: Raul Daniel Garcia; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
16 February 2018
Procedural Posture
Income Tax/corporation Tax Penalty Appeal / First Tier Tribunal (tax Chamber) Decision
Outcome
Partially allowed
Legal Topics
Income Tax, Self Assessment Penalties, Reasonable Excuse, Special Circumstances, Late Filing Penalties
Tax Law Income Tax Self Assessment Penalties Reasonable Excuse Special Circumstances Late Filing Penalties

Case Brief

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Parties

Raul Daniel Garcia

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Income Tax/corporation 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 returns for 2010-11, 2011-12, and 2012-13
  2. 2 Whether penalties imposed under Schedule 55 Finance Act 2009 should be reduced or cancelled due to reasonable excuse or special circumstances

Ratio Decidendi

Mr Garcia had a reasonable excuse for the late filing of the 2011-12 return and the 12-month penalty for the 2010-11 return during the period of homelessness following his redundancy in November 2012 until March 2013. However, he failed to demonstrate a continuing reasonable excuse for late filing after returning to settled accommodation. The Tribunal found no special circumstances warranting further reduction of penalties.

Court Disposition

Partially allowed

Orders

  • The £300 12-month penalty for the 2010-11 tax return and the £100 late filing penalty for the 2011-12 tax return are cancelled.
  • All other penalties under appeal are upheld.