Somercombe OTS No 39 Limited (in liquidation) v Commissioners for Her Majesty's Revenue and Customs
Decision date: 12 April 2011
Neutral citation: [2011] UKFTT 244 (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 £100 fixed penalty for a corporation tax return filed 37 days late; the liquidator explained delay by accountants' failure, lack of information, and inability to file online. The tribunal accepted the company had no taxable income but held those reasons did not constitute a reasonable excuse and that the statutory flat penalty was not excessive. The appeal was dismissed.
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: medium
The tribunal applied para 17 Schedule 18 Finance Act 1998 to impose the flat £100 penalty irrespective of nil tax liability, and held that delegation to accountants or subsequent appointment of a liquidator does not remove the legal obligation to file; ordinary failures by accountants or lack of full information do not normally amount to a reasonable excuse where the filer could have submitted a qualified return or sought HMRC guidance.
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 observed that a filer who lacks full information can file a return "to the best of [their] knowledge" with qualifications or proactively seek HMRC assistance before the due date, and that inability to use an online channel will not automatically be a reasonable excuse absent steps taken to resolve it.