Corriform Limited v Commissioners for Her Majesty's Revenue and Customs
Decision date: 29 January 2010
Neutral citation: [2010] UKFTT 52 (TC)
Overall AI summary confidence: medium
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: medium
Corriform Limited appealed a £500 civil penalty for late EC Sales Lists for periods 03/08, 06/08 and 09/08. The company said its cashier left in April 2008 and an accountant was later instructed, but HMRC had supplied duplicate forms and correspondence. The Tribunal found the first delay might be explained by the departure but was not remedied promptly and therefore did not constitute a reasonable excuse, and there was no reasonable excuse for the subsequent defaults. The appeal was dismissed and the £500 penalty upheld.
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
A departure of key staff can potentially explain a late filing, but it amounts to a reasonable excuse only if the taxpayer takes remedial action as soon as reasonably possible so the return is submitted within the allotted time; failure to remedy promptly defeats that excuse. Additionally, the prior supply of duplicate returns and HMRC assistance undermines a claim of reasonable excuse.
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 observed that, unlike the VAT default surcharge regime, treating an initial default as excused would not reverse the sequence so as to negate a later penalty notice under the EC Sales List penalty regime. The decision also noted the taxpayer bears responsibility to obtain and submit EC Sales Lists when within their power.