Apex Design & Build Ltd v Commissioners for Her Majesty's Revenue and Customs
Decision date: 13 May 2010
Neutral citation: [2010] UKFTT 216 (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
Apex Design & Build Ltd appealed HMRC penalties for late CIS monthly returns covering July 2007–March 2009, asserting they had not received returns from HMRC. The Tribunal found Apex failed to establish a reasonable excuse (no evidence of an event beyond its control) and upheld HMRC’s monthly and final late filing penalties, ordering recalculation of penalties from September 2007. 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: high
The tribunal’s decision rests on the finding that a taxpayer’s failure to register promptly and to ensure returns were filed does not constitute a reasonable excuse for CIS late-filing penalties in the absence of evidence of an exceptional event beyond the taxpayer’s control; an assertion that HMRC did not send returns is insufficient without supporting evidence preventing filing.
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 notes record obiter observations that proportionality might be relevant where no revenue is lost and there are pressing reasons for non-filing, and that HMRC’s “soft landing” policy is a discretionary policy matter (HMRC nonetheless applied penalties after 19.10.07). These points were not decisive in the outcome.