Pearce v Revenue & Customs (INCOME TAX/CORPORATION TAX : Penalty) [2018] UKFTT 466 (TC) (19 July 2018)

Pearce v Revenue & Customs (INCOME TAX/CORPORATION TAX : Penalty) [2018] UKFTT 466 (TC) (19 July 2018)

HMRC failed to establish that the daily penalty under paragraph 4 of Schedule 55 was properly notified and compliant with statutory requirements, so that penalty is set aside. The appellant's belief that the return was filed and ignorance of penalties do not amount to a reasonable excuse or special circumstances for the remaining penalties, which are upheld.

Citation
[2018] UKFTT 466
Parties
Appellant: Susan Pearce; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
19 July 2018
Procedural Posture
Tax Penalty Appeal / First Tier Tribunal (tax Chamber) Decision on Paper Without Hearing
Outcome
Appeal allowed in part; daily penalty set aside, fixed and six-month penalties upheld.
Legal Topics
Income Tax, Self Assessment, Penalties, Reasonable Excuse, Special Circumstances, Procedural Compliance
Tax Law Administrative Law Income Tax Self Assessment Penalties Reasonable Excuse Special Circumstances Procedural Compliance

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Parties

Susan Pearce

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Tax Penalty Appeal / First Tier Tribunal (tax Chamber) Decision on Paper Without Hearing

Legal Issues

  1. 1 Whether HMRC established that penalty notices were properly delivered and complied with Schedule 55 Finance Act 2009
  2. 2 Whether the appellant had a reasonable excuse for late filing
  3. 3 Whether ignorance of penalties or belief return was filed amounts to reasonable excuse or special circumstances

Ratio Decidendi

HMRC failed to establish that the daily penalty under paragraph 4 of Schedule 55 was properly notified and compliant with statutory requirements, so that penalty is set aside. The appellant's belief that the return was filed and ignorance of penalties do not amount to a reasonable excuse or special circumstances for the remaining penalties, which are upheld.

Court Disposition

Appeal allowed in part; daily penalty set aside, fixed and six-month penalties upheld.

Orders

  • Penalty of £900 under paragraph 4 Schedule 55 Finance Act 2009 set aside.
  • Penalties of £100 (paragraph 3) and £300 (paragraph 5) Schedule 55 Finance Act 2009 upheld.