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Two recent cases concerned late appeals.
The first centred on a late appeal by Martin and Gaynor O’Hearne Properties Ltd and the valuation of two properties. In essence, HMRC opened an enquiry into the taxpayer’s return, requesting valuations of the the properties. These were obtained but not agreed by the company.
The district valuer sent the un-agreed figures to the Revenue, which used them as a basis on which to close the enquiry. After various phone calls and emails, the company appealed 15 months later than the time limit for appealing.
The First-tier Tribunal adopted the approach that its discretion to allow an appeal to continue out of time had to be applied in line with its obligation under rule 2(3) of the Procedure Rules to deal with cases fairly and justly.
It had to take into account the guidance in Ogedegbe (TC302), in which the tribunal judge said a late appeal could only be permitted ‘exceptionally’. The tribunal also had to consider the factors listed in rule 2(2) and the fact the appellant had to show a reasonable excuse for the delay in appealing.
The tribunal found that the company had no reasonable excuse for the late appeal. It knew the taxpayer may have wished to appeal; had it been more diligent, the delay could have been avoided.
The company had not pursued the appeal in a timely manner. The application for leave to appeal out of time was refused.
The second case, G Lupson, also concerned the closure of an enquiry, but had a better result for the appellant.
In summary, the appellant said he had not received the closure notice from HMRC, sent in March 2008, because it had been sent to a property in which he no longer lived but let to tenants. He claimed he heard nothing from the taxman about the closure notice until 2009. No appeal was made until April 2010.
The tribunal concluded there was serious doubt whether the appellant had received the closure notice. As he had contacted HMRC regarding other tax matters in the meantime, it was probable that had he known about the closure notice, he would have raised it with the department.
Also bearing in mind the appellant’s medical history, the tribunal decided to allow the application for a late appeal.
