Eaton v Revenue & Customs

INCOME TAX � Individual Tax Return � Self Assessment � late filing penalty � reasonable excuse � alleged confusion over amount of tax due � appeal dismissed

The Tribunal determined the appeal on 24 January 2013 without a hearing under the provisions of Rule 26 of the Tribunal Procedure (First-tier Tribunal)(Tax Chamber) Rules 2009 (default paper cases) having first read the Notice of Appeal dated 29 September 2013 and HMRC�s Statement of Case dated 13 November 2013 (with enclosures).

This determination has been prepared following the Appellant�s request for full findings following the promulgation of the standard short form determination usual in default paper appeals.� In reality having heard no live evidence from either side there is little which the Tribunal can usefully add, nevertheless a full decision is required to enable an application for permission to appeal to the Upper Tribunal to be considered.�

The Appellant contended in summary that he had been unable to pay because he wanted to identify the correct sum due to HMRC.� He had sent letters and telephoned explaining that he was happy and willing to pay if terms could be agreed.� He was unhappy about the fines and surcharges applied, despite assurances that these would cease once a payment plan had been agreed.� He had paid contributions when possible.� He had suffered serious ill health in the previous two and half years.� There had been no proper consideration of his position.

The explanations provided by the Appellant are not a reasonable excuse. In simple terms, he might have shown a reasonable excuse if he had produced evidence to show that the exercise of reasonable foresight, due diligence and proper regard for his obligations as a taxpayer would not have avoided the failure to pay by the due date.� An example might be a situation beyond his control, such as illness, but that would have to have been proved to the ordinary civil standard: see paragraph 9, below.