ASI Properties Ltd v Commissioners for Her Majesty's Revenue and Customs
Decision date: 3 February 2011
Neutral citation: [2011] UKFTT 105 (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
ASI Properties Ltd appealed a £82,940 tax-geared penalty for filing its corporation tax return 603 days late, arguing the delay was caused by their accountant leaving, the director's divorce and unresolved rollover relief. The First-tier Tribunal found no reasonable excuse that persisted throughout the default period, rejected the aggregation of those difficulties as excusing the delay, and upheld the penalty. 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’s ratio is that a taxpayer’s inability to provide final figures does not excuse late filing where a return using best-knowledge estimates would meet the filing obligation, and that events such as an accountant’s departure or a director’s personal difficulties do not amount to a reasonable excuse when the taxpayer fails to make contingency arrangements or to communicate with HMRC.
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 (obiter) that ignorance of the law is not a reasonable excuse given public availability of filing and penalty information, and that relying on informal or ad‑hoc arrangements (for example part‑time assistance with other commitments) will not necessarily excuse non‑compliance.