ESA Films Limited v Commissioners for Her Majesty's Revenue and Customs
Decision date: 14 April 2011
Neutral citation: [2011] UKFTT 248 (TC)
Overall AI summary confidence: high
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
This appeal concerned a £1,100.23 penalty for ESA Films Ltd's 241-day late filing of its 2004 corporation tax return after earlier name changes from Internet Experts Ltd to ESA Recruitment Ltd and then ESA Films Ltd. The Tribunal found the company is the same legal entity notwithstanding the name changes, that no reasonable excuse was shown for late filing, and that payment of the tax and the passage of time did not amount to a reasonable excuse. The appeal was dismissed and the paragraph 18 penalty confirmed.
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
A company that has merely changed its name remains the same legal entity and is liable for penalties incurred under its former name; and payment of the tax liability (and delay in payment or the mere passage of time) does not, by itself, constitute a “reasonable excuse” to disapply or reduce a late-filing penalty under paragraph 18.
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 noted (not as binding ratio) that the fixed statutory nature of the paragraph 18 penalty and general economic or trading difficulties are not, without additional evidence, sufficient to establish a reasonable excuse; Companies House records showing a company as “Active” are relevant evidence that it has not ceased to exist.