Cook v Revenue & Customs (INCOME TAX - high income child benefit charge) [2020] UKFTT 148 (TC) (18 March 2020)

Cook v Revenue & Customs (INCOME TAX - high income child benefit charge) [2020] UKFTT 148 (TC) (18 March 2020)

Ignorance of the law regarding the High Income Child Benefit Charge does not amount to a reasonable excuse for failure to notify liability under Schedule 41 FA 2008. The penalties were lawfully imposed and correctly calculated. No special circumstances justified a reduction in penalty, and the tribunal has no jurisdiction to adjust penalties based on perceived unfairness.

Citation
[2020] UKFTT 148 (TC)
Parties
Appellant: Richard Cook; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
18 March 2020
Procedural Posture
Income Tax Penalty Appeal / First Tier Tribunal (tax Chamber) Final Decision
Outcome
Appeal dismissed
Legal Topics
High Income Child Benefit Charge, Failure to Notify Penalty, Reasonable Excuse, Finance Act 2008, Finance Act 2012, Taxes Management Act 1970
Tax Law High Income Child Benefit Charge Failure to Notify Penalty Reasonable Excuse Finance Act 2008 Finance Act 2012 Taxes Management Act 1970

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Parties

Richard Cook

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

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

Legal Issues

  1. 1 Whether ignorance of the law constitutes a reasonable excuse for failure to notify liability to the High Income Child Benefit Charge
  2. 2 Whether the penalties imposed under Schedule 41 FA 2008 were lawfully imposed and correctly calculated
  3. 3 Whether HMRC's refusal to reduce penalties for special circumstances was flawed

Ratio Decidendi

Ignorance of the law regarding the High Income Child Benefit Charge does not amount to a reasonable excuse for failure to notify liability under Schedule 41 FA 2008. The penalties were lawfully imposed and correctly calculated. No special circumstances justified a reduction in penalty, and the tribunal has no jurisdiction to adjust penalties based on perceived unfairness.

Court Disposition

Appeal dismissed