Ms Laoise Davidson v Commissioners for Her Majesty's Revenue and Customs
Decision date: 21 March 2011
Neutral citation: [2011] UKFTT 194 (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% default surcharge under s.59 TMA for late payment of 2008/09 tax. The tribunal accepted the appellant had genuine financial difficulties and made some payments and attempts to agree instalments, but found she did not have a "reasonable excuse" for the whole period of default. The appeal was dismissed and the surcharge was confirmed.
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 applied s.59(9)–(10) TMA: inability to pay is not a "reasonable excuse" for late payment, and a surcharge can only be set aside if the taxpayer had a reasonable excuse throughout the entire period of default; partial or later unforeseeable events do not suffice to avoid or reduce the surcharge.
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 expressed sympathy for taxpayers in genuine hardship and acknowledged the appellant’s efforts to pay, and observed that isolated unforeseeable incidents (for example a stolen debit card causing a short delay) that would only marginally reduce the surcharge do not change the statutory outcome.