The Company of the Plumed Horse Ltd v Commissioners for Her Majesty's Revenue and Customs

Decision date: 24 June 2011

Neutral citation: [2011] UKFTT 417 (TC)

Overall AI summary confidence: high

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Short overview

This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.

AI confidence in this short overview: high

The Company of the Plumed Horse Ltd appealed two £200 flat‑rate penalties for late corporation tax returns for periods ending 31 Oct 2007 and 31 Oct 2008, arguing the defaults were caused by the deaths and illness affecting their two‑partner audit practice. The First‑tier Tribunal rejected that plea, finding the company had no reasonable excuse throughout the defaults and had failed to take steps (such as instructing new auditors or submitting estimated returns). The appeal was dismissed and the penalties upheld.

Ratio decidendi

This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.

AI confidence in this ratio decidendi summary: high

Illness or death affecting a taxpayer’s representatives can in principle constitute a "reasonable excuse," but the taxpayer must have a reasonable excuse for the entire default period; the underlying duty remains on the taxpayer to ensure timely filing and to take alternative steps (for example instructing new auditors or filing estimated returns) if their representatives cannot perform.

Obiter dicta

This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.

AI confidence in this obiter dicta summary: medium

The tribunal expressed sympathy for the overwhelmed auditor and noted that sudden or very serious illness of representatives might, in some cases, amount to a reasonable excuse—but this observation did not alter the conclusion that here the company had not maintained a reasonable excuse and had not acted without unreasonable delay once any excuse ended.

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- Text in the chunk is duplicated, but the content is consistent; none other than duplication.

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