Zepinic v Revenue and Customs (INCOME TAX/CORPORATION TAX : Penalty)

INCOME TAX � paragraph 23(2)(b) schedule 55 Finance Act 2009 �� penalty for failure to make returns � was reliance on a third party a reasonable excuse? � No � appeal dismissed

The Tribunal determined the appeal on 22 August 2017 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 6 June 2014 (with enclosures) and HMRC�s Statement of Case (with enclosures) acknowledged by the Tribunal on 22 February 2017.

The appellant, Dr Zepinic appointed an accountant to deal with his tax return for the year ended 5 April 2012.� Unfortunately, the accountant failed to submit the tax return and so the return was only received by HMRC on 23 September 2013 after a new accountant had been appointed.

This was well after the statutory deadline for submitting the return and, as a result of this, HMRC charged late filing penalties totalling �1,769.

The penalties which have been charged consist of an initial late filing penalty of �100, a daily penalty for 90 days at �10 per day totalling �900, a minimum penalty of �300 due to the tax return being more than six months late and a further tax related penalty of �469 also based on the tax return being filed more than six months late.