Stewart Getty v Commissioners for Her Majesty's Revenue and Customs
Decision date: 2 June 2010
Neutral citation: [2010] UKFTT 251 (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 HMRC's cancellation of Mr Stewart Getty's gross payment status after three late tax payments in the 9 April 2008–9 April 2009 compliance period. The Tribunal found one shortfall (a Self Assessment allocation issue) excused as an allocation oversight attributable to agent/taxpayer change and promptly remedied, but found two late PAYE payments were not excused due to insufficient vigilance and reliance on informal payment practices. Accordingly the Tribunal upheld HMRC's cancellation of gross payment registration.
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 Schedule 11 (compliance and reasonable excuse) and held that an isolated allocation shortfall caused by an agent/taxpayer oversight, promptly rectified once discovered, can amount to a reasonable excuse under paragraph 4(4). Conversely, reliance on an agent or on informal payment practices (such as pre-signed cheque arrangements) does not automatically excuse late PAYE payments; a taxpayer must exercise the vigilance and oversight of a reasonably competent business person, particularly during changes of agent.
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 judgment noted (without allowing it to outweigh the compliance failures) that withdrawal of gross status can have disproportionate commercial consequences for a taxpayer, and reiterated that the standard for reasonable excuse is judged against the conduct of a "reasonable competent business person" exercising foresight and due diligence.
Warning
chunk contains repetitive/duplicated text which required consolidation. Notes indicate some repetition and consolidation; they appear to be extracts and may not capture the full judgment.