Yusuf Budiadi v Commissioners for Her Majesty's Revenue and Customs
Decision date: 8 April 2011
Neutral citation: [2011] UKFTT 233 (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
This appeal concerned whether Mr Budiadi had a "reasonable excuse" for failing to pay income tax due by 31 January 2009 on a post-employment payment that had been taxed at basic rate only. The First-tier Tribunal found that his genuine belief that PAYE had discharged the tax liability amounted to a reasonable excuse for the period before HMRC notified him, and discharged the £210.44 surcharge; he remained liable for the outstanding tax once notified.
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 held that "reasonable excuse" under the relevant statutory provisions does not necessarily require an exceptional event outside the taxpayer's control, and that a genuine mistake of fact—here, the taxpayer's belief that PAYE had correctly deducted the tax—can, in appropriate circumstances, constitute a reasonable excuse for late payment.
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 judgment indicates that ignorance of the law is unlikely to amount to a reasonable excuse, and that the taxpayer's state of mind (what he knew or believed) is relevant to whether a reasonable excuse exists; however these propositions were not the determinative basis for allowing the appeal.
Warning
- The chunk contains duplicated passages but is otherwise clear.