Foster v Revenue & Customs [2012] UKFTT 266 (TC) (10 April 2012)

Foster v Revenue & Customs [2012] UKFTT 266 (TC) (10 April 2012)

The appellant did not have a reasonable excuse for missing the payment; cash flow difficulties and banking issues do not constitute a reasonable excuse for a sophisticated taxpayer. Procedural anomalies and lack of warning do not provide a statutory basis for setting aside the surcharges. The penalty, though harsh, is not plainly unfair or disproportionate under the applicable legal standard.

Citation
[2012] UKFTT 266 (TC)
Parties
Appellant: Toby Foster; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
10 April 2012
Procedural Posture
Tax Penalty Appeal / First Tier Tribunal (tax Chamber) Decision
Outcome
Appeal dismissed
Legal Topics
Income Tax, Late Payment Penalty, Reasonable Excuse, Deferred Payment Plan, Surcharge, Procedural Fairness
Tax Law Income Tax Late Payment Penalty Reasonable Excuse Deferred Payment Plan Surcharge Procedural Fairness

Case Brief

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Parties

Toby Foster

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

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

Legal Issues

  1. 1 Whether the surcharges for late payment of income tax imposed on the appellant should be set aside on the basis of reasonable excuse or procedural unfairness.

Ratio Decidendi

The appellant did not have a reasonable excuse for missing the payment; cash flow difficulties and banking issues do not constitute a reasonable excuse for a sophisticated taxpayer. Procedural anomalies and lack of warning do not provide a statutory basis for setting aside the surcharges. The penalty, though harsh, is not plainly unfair or disproportionate under the applicable legal standard.

Court Disposition

Appeal dismissed