TELNG Ltd v Revenue & Customs (VAT - PENALTIES : Other)

Penalty for non-compliance with information notice � Schedule 36 Finance Act 2008 � notice requiring production of documents by post or email � whether notice valid � whether appellant complied or had reasonable excuse for failure to comply � appeal dismissed

This decision concerns the exercise by HMRC of their power under paragraph 1 of Schedule 36 Finance Act 2008 (�FA08�) to require a taxpayer to produce documents.

There were essentially two issues.� First, the appellant argued that the form of the notice itself was invalid and accordingly any penalty founded on it could not stand.� Second, it argued that on the facts of the case it had a reasonable excuse in any event for the supposed failure to comply with the notice.

We have decided to produce and publish a full decision on this case (rather than a private summary decision, which would be more normal in such cases) in order to make known our views on one particular line of technical argument put forward by the appellant.� For further detail on this particular point, see [36] to [46] below.

The appellant was not represented.� On the morning of the appeal its Director Mr David Knell contacted the Tribunal by email, stating that he would be unable to attend the hearing and asking for some written submissions to be drawn to the Tribunal�s attention.