Ray v Revenue and Customs (LATE PAYMENT PENALTY - failure to pay APN whilst challenging by way of judicial review) [2024] UKFTT 968 (TC) (22 October 2024)

Ray v Revenue and Customs (LATE PAYMENT PENALTY - failure to pay APN whilst challenging by way of judicial review) [2024] UKFTT 968 (TC) (22 October 2024)

The appellant failed to pay APNs by the due date and did not establish a reasonable excuse or special circumstances. Judicial review proceedings and inability to pay do not constitute a reasonable excuse. Settlement of the underlying tax did not require withdrawal of APNs or penalties. The penalties were validly imposed and the appeal was dismissed.

Citation
[2024] UKFTT 968
Parties
Appellant: Stephen Ray; Respondents: The Commissioners for His Majesty's Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
22 October 2024
Procedural Posture
Tax Penalty Appeal / First Tier Tribunal (tax Chamber) Final Judgment
Outcome
Appeal dismissed
Legal Topics
Accelerated Payment Notices, Late Payment Penalties, Reasonable Excuse, Special Circumstances, Judicial Review, Tax Avoidance Schemes
Tax Law Administrative Law Accelerated Payment Notices Late Payment Penalties Reasonable Excuse Special Circumstances Judicial Review Tax Avoidance Schemes

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Parties

Stephen Ray

Appellant

The Commissioners for His Majesty's Revenue and Customs

Respondents

Procedural Posture

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

Legal Issues

  1. 1 Whether failure to pay APNs while challenging by judicial review constitutes a reasonable excuse for late payment penalties
  2. 2 Whether there are special circumstances justifying reduction or cancellation of penalties
  3. 3 Whether settlement of underlying tax liabilities requires withdrawal of APNs and associated penalties

Ratio Decidendi

The appellant failed to pay APNs by the due date and did not establish a reasonable excuse or special circumstances. Judicial review proceedings and inability to pay do not constitute a reasonable excuse. Settlement of the underlying tax did not require withdrawal of APNs or penalties. The penalties were validly imposed and the appeal was dismissed.

Court Disposition

Appeal dismissed

Orders

  • The penalties for late payment of APNs stand; no reduction or cancellation is ordered.