Patel v Revenue & Customs (INCOME TAX - fixed and daily penalties) [2019] UKFTT 453 (TC) (10 July 2019)

Patel v Revenue & Customs (INCOME TAX - fixed and daily penalties) [2019] UKFTT 453 (TC) (10 July 2019)

The appellant did not have a reasonable excuse for late filing as he was aware of his obligations as a company director, likely received the notice to file, and failed to take reasonable care to ensure compliance. Ignorance of the obligation or reliance on an agent without reasonable care does not constitute a reasonable excuse. No special circumstances existed to justify reduction of penalties, and HMRC's decision was not flawed.

Citation
[2019] UKFTT 453
Parties
Appellant: Siraz Patel; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
10 July 2019
Procedural Posture
Income Tax Penalty Appeal / First Tier Tribunal (tax Chamber) Decision on Papers
Outcome
Appeal dismissed
Legal Topics
Income Tax, Self Assessment, Late Filing Penalties, Reasonable Excuse, Special Circumstances
Tax Law Income Tax Self Assessment Late Filing Penalties Reasonable Excuse Special Circumstances

Case Brief

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Parties

Siraz Patel

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

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

Legal Issues

  1. 1 Whether the appellant had a reasonable excuse for late filing of self-assessment tax return for 2016-17
  2. 2 Whether HMRC correctly imposed fixed and daily penalties under Schedule 55 Finance Act 2009
  3. 3 Whether special circumstances existed to justify reduction of penalties

Ratio Decidendi

The appellant did not have a reasonable excuse for late filing as he was aware of his obligations as a company director, likely received the notice to file, and failed to take reasonable care to ensure compliance. Ignorance of the obligation or reliance on an agent without reasonable care does not constitute a reasonable excuse. No special circumstances existed to justify reduction of penalties, and HMRC's decision was not flawed.

Court Disposition

Appeal dismissed

Orders

  • Fixed penalty of £100 and daily penalties of £750 confirmed.