R P Building Services Ltd v Commissioners for Her Majesty's Revenue and Customs
Decision date: 17 January 2011
Neutral citation: [2011] UKFTT 53 (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 late filing of CIS returns for the months ended 5 October 2007 to 5 April 2008, which were not filed until 26 August 2009. The Tribunal found the appellant had no reasonable excuse for the delays, rejected arguments about reliance on initial advisers and being new to the UK, and upheld statutory penalties totaling £9,300. The Tribunal also held it had no discretion to reduce or remit those penalties. Permission to appeal may be sought within 56 days.
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
On the facts of this case, reliance on incorrect advice from advisers and unfamiliarity with the UK does not constitute a reasonable excuse for late filing of CIS returns; a taxpayer carrying on business in a new country remains responsible for ensuring statutory compliance. The Tribunal concluded it had no discretion to reduce or remit the statutory penalties imposed for those failures.
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 commented that complaints about bad professional advice are matters for the appellant to pursue against the advisers rather than excuses for non-compliance with tax filing obligations. It also suggested that the adverse impact of penalties on the business did not, in these circumstances, provide a basis for remitting statutory penalties.
Warning
- none