Mr J H Joy v Commissioners for Her Majesty's Revenue and Customs
Decision date: 22 February 2011
Neutral citation: [2011] UKFTT 132 (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 fixed penalties for filing the 2004/05 self-assessment return 233 days late. The Tribunal considered whether the appellant had a "reasonable excuse" for the whole default period, given sabbatical leave, divorce and a mild stroke. The Tribunal found the appellant did not prove, on the balance of probabilities, a reasonable excuse lasting throughout the default period and dismissed the appeal, confirming the £120.47 penalty.
Ratio decidendi
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AI confidence in this ratio decidendi summary: high
The taxpayer asserting a "reasonable excuse" bears the burden of proof on the balance of probabilities and must show the excuse existed for the entire period of default; the Tribunal evaluates reasonable excuse by reference to the conduct of a prudent taxpayer exercising reasonable foresight and due diligence.
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: high
The Tribunal noted that personal illness and domestic difficulties can be relevant but require specific evidence linking them causally to the failure to file throughout the default period; it also indicated that failing to notify HMRC of difficulties may be material when assessing whether the taxpayer acted with due diligence.