Michael Breen v The Commissioners for HMRC
Decision date: 14 April 2022
Neutral citation: [2022] UKFTT 155 (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 concerned a Schedule 55 penalty of £10,664.69 imposed for filing the 2014/15 self-assessment return late. Mr Breen argued a debilitating fear of HMRC and PTSD from prior investigations gave him a "reasonable excuse" and that "special circumstances" justified reduction. The Tribunal rejected his evidence, found no reasonable excuse and no basis to disturb HMRC's special-circumstances decision, and dismissed the appeal.
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
A taxpayer's subjective fear of prosecution arising from prior investigations will not constitute a reasonable excuse for late filing unless supported by compelling, corroborative evidence demonstrating incapacity to deal with affairs; assertions of mental-health incapacity to prepare or submit returns typically require independent medical or contemporaneous evidence to be established.
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 noted that HMRC review officers should give concise but genuine reasons when considering paragraph 16 special-circumstances requests, as overly formulaic wording can create a problematic impression even if not determinative. The Tribunal also indicated that permission and compliance with FCDO arrangements are required when taking oral evidence from abroad.