Shine Telecom Ltd v Revenue & Customs [2012] UKFTT 448 (TC) (12 July 2012)

Shine Telecom Ltd v Revenue & Customs [2012] UKFTT 448 (TC) (12 July 2012)

The company had a reasonable excuse for late payment for the first three months due to unexpected and critical changes in banking arrangements, but not for the remainder of the period. The penalty regime was not unreasonably punitive or issued without warning. The penalty should be recalculated to reflect the reasonable excuse period.

Citation
[2012] UKFTT 448
Parties
Appellant: Shine Telecom Ltd; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
12 July 2012
Procedural Posture
Tax Penalty Appeal / First Tier Tribunal Decision
Outcome
Appeal allowed in part
Legal Topics
PAYE Penalties, Late Payment, Reasonable Excuse, Finance Act 2009, Corporation Tax
Tax Law PAYE Penalties Late Payment Reasonable Excuse Finance Act 2009 Corporation Tax

Case Brief

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Parties

Shine Telecom Ltd

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Tax Penalty Appeal / First Tier Tribunal Decision

Legal Issues

  1. 1 Whether Shine Telecom Ltd had a reasonable excuse for late payment of PAYE under Schedule 56 Finance Act 2009
  2. 2 Whether the penalty imposed was unreasonably punitive or issued without warning

Ratio Decidendi

The company had a reasonable excuse for late payment for the first three months due to unexpected and critical changes in banking arrangements, but not for the remainder of the period. The penalty regime was not unreasonably punitive or issued without warning. The penalty should be recalculated to reflect the reasonable excuse period.

Court Disposition

Appeal allowed in part

Orders

  • Penalty to be recalculated excluding first three months and month 12, resulting in a penalty of £2,211.02, subject to representations within 14 days.