Archer v Revenue & Customs (Validity of surcharge notices under Section 59C TMA - notice not sent to taxpayer) [2020] UKFTT 288 (TC) (08 July 2020)

Archer v Revenue & Customs (Validity of surcharge notices under Section 59C TMA - notice not sent to taxpayer) [2020] UKFTT 288 (TC) (08 July 2020)

The Tribunal held that the manually issued February Notices were valid surcharge notices under Section 59C TMA because they were sufficiently proximate to the original imposition of the surcharge and there was no statutory bar to issuing a valid notice when the original was not served. The Tribunal found that the additional surcharge notice was valid as it arose from a later change in circumstances. The Tribunal concluded that Mr Archer did not have a reasonable excuse for late payment beyond the date of the Court of Appeal's decision, and payment was not made without unreasonable delay after that point. Accordingly, the surcharges (except those conceded by HMRC) were upheld.

Citation
[2020] UKFTT 288 (TC)
Parties
Appellant: William Archer; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
08 July 2020
Procedural Posture
Tax Appeal / First Tier Tribunal (tax Chamber) Decision
Outcome
Appeal allowed in part, dismissed in part
Legal Topics
Validity of Surcharge Notices, Section 59 C Taxes Management Act 1970, Service of Statutory Notices, Reasonable Excuse for Late Payment, Judicial Review and Tax Enforcement, Self Assessment Procedures
Tax Law Validity of Surcharge Notices Section 59 C Taxes Management Act 1970 Service of Statutory Notices Reasonable Excuse for Late Payment Judicial Review and Tax Enforcement Self Assessment Procedures

Case Brief

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Parties

William Archer

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Tax Appeal / First Tier Tribunal (tax Chamber) Decision

Legal Issues

  1. 1 Whether manually issued surcharge notices under Section 59C TMA are valid when original computer-generated notices were not served
  2. 2 Whether HMRC can issue an additional surcharge notice for the same period and default
  3. 3 Whether the taxpayer had a reasonable excuse for late payment due to ongoing judicial review proceedings and HMRC undertakings

Ratio Decidendi

The Tribunal held that the manually issued February Notices were valid surcharge notices under Section 59C TMA because they were sufficiently proximate to the original imposition of the surcharge and there was no statutory bar to issuing a valid notice when the original was not served. The Tribunal found that the additional surcharge notice was valid as it arose from a later change in circumstances. The Tribunal concluded that Mr Archer did not have a reasonable excuse for late payment beyond the date of the Court of Appeal's decision, and payment was not made without unreasonable delay after that point. Accordingly, the surcharges (except those conceded by HMRC) were upheld.

Court Disposition

Appeal allowed in part, dismissed in part

Orders

  • Appeal against the Second Surcharge Notices allowed (not served, HMRC conceded)
  • Appeal against the February Notices and Additional Surcharge Notice dismissed (notices valid, surcharges upheld)