Mr Paul Frossell v Commissioners for Her Majesty's Revenue and Customs

Decision date: 22 January 2010

Neutral citation: [2010] UKFTT 80 (TC)

Overall AI summary confidence: medium

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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

This appeal concerned daily penalties under s.93(3) TMA 1970 for alleged late submission of 2004/05 and 2005/06 income tax returns. HMRC’s records did not show receipt of paper returns and correspondence had been sent to a different address; the appellant asserted he had filed returns with multiple offices and ultimately filed online. The Tribunal found HMRC had not proved the returns were received nor that notices had effectively reached the appellant, accepted the appellant’s account as credible, and allowed the appeal by reducing the penalties to nil.

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

Where HMRC cannot satisfactorily prove delivery of returns or effective service of notices and there is credible evidence that communications were misdirected, the Tribunal may find the taxpayer had a reasonable excuse for non-delivery and set aside or reduce daily penalties under s.93(3) TMA 1970. The decision turned on evidential insufficiency in HMRC’s case and giving the appellant the benefit of the doubt.

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 treated a Special Commissioner’s remark about proportionality in Austin v Price as of little significance to this First-tier decision. The Tribunal also observed that the timing and method by which returns were ultimately received (online filing dates) was relevant to the evidential assessment of when returns were delivered.

Warning

Some repetition and duplicated material in the chunk; facts and submissions are reiterated. Notes contain repetition and duplicated material.

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