John Dignam v Commissioners for Her Majesty's Revenue and Customs

Decision date: 28 October 2010

Neutral citation: [2010] UKFTT 522 (TC)

Overall AI summary confidence: high

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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: high

This appeal concerned two late‑payment surcharges for the 2007/08 tax year after the appellant paid most but not all of his tax late. The appellant relied on delayed access to funds in Ireland and on a cheque left with his accountant; the Tribunal found those explanations unsupported by evidence and insufficient to establish a reasonable excuse. The Tribunal dismissed the appeal and confirmed surcharges of £4,659.44 and £258.99.

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 confirmed that on a penalty appeal the appellant must prove, on the balance of probabilities, that a reasonable excuse existed throughout the period of default; absent sufficient supporting facts or prior precautions, reliance on a third party (here, the accountant) does not constitute a reasonable excuse and will not displace the surcharge.

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 applied a standard of conduct measured against a prudent taxpayer exercising reasonable foresight and due diligence, and noted that failure to provide documentary detail (for example, about deposit terms in Ireland) undermines a claim that funds were unforeseeably inaccessible.

Warning

- The chunk contains repeated passages (duplication of facts and findings) which may be noisy but does not alter the Tribunal's findings. notes contain some duplicated material but no indication of missing core facts.

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