Burden of proof lays with HMRC

The taxpayer partnership was issued with a late-filing penalty in respect of each of the two partners on the basis the partnership return for 2007/08 was not received until October 2009. The latest date by which it should have been submitted was 31 January 2009.

The taxpayer appealed saying its return had been filed by the due date. Its accountant surmised that the return had not been processed and a further return was sent after the filing date. In essence the accountant claimed fault lay with HMRC.

The First-tier Tribunal judge Geraint Jones QC referred to the European Court of Human Rights’ decision in Jussila v Finland [2009] STC 29 which determined that the burden of proof with regard to penalties and surcharges lay with the authority that imposed them.

The Revenue had demanded evidence from the taxpayer to show the return had been...