Quirke v Revenue & Customs (INCOME TAX/CORPORATION TAX : Penalty)

INCOME TAX - penalty for failure to make returns - not aware of need to file - whether reasonable excuse - no -appeal dismissed in part -Partial reduction of penalties.

������� The appellant is appealing against penalties that HMRC have imposed under Schedule 55 of the Finance Act 2009 (�Schedule 55�) for a failure to submit an annual self-assessment return for the 2012/13 ;2013/2104 ;2014/2015 tax years on time.�

3.�������� In addition, the appellant�s appeal was notified to the Tribunal between one year and ten months and five years and ten months late.

Given the appellant had penalties of �9,768 but no tax liability and had substantial tax repayments due �in the period 12/13 to 17/18 where �40,787 in tax was deducted at source and �his agent had received no paperwork on the penalties from HMRC, it was felt that the matter should be heard and explained in more detail.

We were satisfied that it was most likely that a more lucid explanation would be forthcoming from the appellant�s agent. In short, we considered that we could fairly and justly deal with the case at the hearing if we had representations by the Appellant�s agent who described his client as �flabbergasted� that he had incurred penalties when he has paid all the tax due.