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 late filing only during the period of homelessness and redundancy (November 2012 to March 2013), justifying cancellation of the £300 12-month penalty for 2010-11 and the £100 late filing penalty for 2011-12. For other periods, he failed to demonstrate a continuing reasonable excuse, and the remaining penalties stand. No special circumstances were found to warrant further reduction.

Citation
[2018] UKFTT 88
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) Substantive 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) Substantive 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 under Schedule 55 Finance Act 2009
  2. 2 Whether penalties imposed were valid and correctly calculated
  3. 3 Whether special circumstances existed warranting penalty reduction

Ratio Decidendi

Mr Garcia had a reasonable excuse for late filing only during the period of homelessness and redundancy (November 2012 to March 2013), justifying cancellation of the £300 12-month penalty for 2010-11 and the £100 late filing penalty for 2011-12. For other periods, he failed to demonstrate a continuing reasonable excuse, and the remaining penalties stand. No special circumstances were found to warrant further reduction.

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.