Penalty is appropriate

In a long-running case that had progressed through the courts to the Court of Appeal a solicitor had been found to be negligent with regard to the partnership’s tax affairs.

An offer to settle the case was agreed although HMRC maintained the right to impose a penalty which they subsequently did. The taxpayer appealed against the fine before the High Court and then the Court of Appeal but to no avail.

Following the Court of Appeal decision the First-tier Tribunal held a hearing to decide whether the taxpayer could raise a challenge on human rights grounds that the Revenue had delayed notifying him about the penalty and also whether it was appropriate.

The tribunal said the taxpayer had not previously brought up the matter of delay and it was now too late to do so. He should have done so at the...