Pearson v Revenue & Customs (INCOME TAX/CORPORATION TAX : Penalty) [2018] UKFTT 358 (TC) (28 June 2018)

Pearson v Revenue & Customs (INCOME TAX/CORPORATION TAX : Penalty) [2018] UKFTT 358 (TC) (28 June 2018)

The Tribunal found that Mr Pearson, a young and inexperienced taxpayer, reasonably relied on the advice of a recommended and apparently competent accountant, and that this reliance constituted a reasonable excuse for the late filing. The penalties were therefore cancelled.

Citation
[2018] UKFTT 358 (TC)
Parties
Appellant: Warren Pearson; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
28 June 2018
Procedural Posture
Income Tax/corporation Tax Penalty Appeal / First Tier Tribunal (tax Chamber) Substantive Decision
Outcome
Appeal allowed
Legal Topics
Income Tax, Self Assessment, Penalties, Reasonable Excuse, Reliance on Professional Advice
Tax Law Income Tax Self Assessment Penalties Reasonable Excuse Reliance on Professional Advice

Case Brief

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Parties

Warren Pearson

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

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

Legal Issues

  1. 1 Whether penalties for late filing of tax returns for 2013/14 and 2014/15 should be upheld
  2. 2 Whether the appellant had a reasonable excuse for non-filing
  3. 3 Whether reliance on an accountant constitutes a reasonable excuse

Ratio Decidendi

The Tribunal found that Mr Pearson, a young and inexperienced taxpayer, reasonably relied on the advice of a recommended and apparently competent accountant, and that this reliance constituted a reasonable excuse for the late filing. The penalties were therefore cancelled.

Court Disposition

Appeal allowed

Orders

  • All penalties for late filing of tax returns for 2013/14 and 2014/15 are cancelled.