Trustees of the D R Shanks Discretionary Trust v Commissioners for Her Majesty's Revenue and Customs
Decision date: 19 May 2011
Neutral citation: [2011] UKFTT 332 (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 challenged a 5% surcharge for late payment of a trust's 2008–09 tax liability, the trustees having filed the return but not paid the balance due by 31 January 2010. The Tribunal found no reasonable excuse for non-payment from 31 January to on or after 20 April 2010, rejecting reliance on professional advisers, non-receipt of an HMRC payslip, and the new trustee's unfamiliarity, and dismissed the appeal.
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
The Tribunal held that under the self-assessment regime the taxpayer remains responsible to pay by the due date and that ordinary reliance on professional advisers, non-receipt of HMRC reminders/payslips, or a trustee's unfamiliarity with procedures did not constitute a reasonable excuse for late payment on these facts.
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 indicated it would be reluctant to extend "reasonable excuse" to ordinary late payments caused by adviser negligence, while acknowledging that reliance on advisers might be reasonable in relation to highly complex or specialised matters (suggested as a possible exception).