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CRC v Bosher, Upper Tribunal (Tax and Chancery Chamber)
HMRC imposed penalties on the taxpayer because he had failed to file numerous monthly construction industry scheme returns on time.
He appealed to the First-tier Tribunal, which found no reasonable excuse for not having submit the returns. But the appeal was allowed to the extent that the fixed monthly fines were found to be disproportionate.
The Revenue appealed to the Upper Tribunal, which concluded that the penalties had been properly imposed in accordance with the legislation.
The taxpayer had a right to appeal, but only if the fines were incorrect, “which the fixed £100 penalties clearly were not”, meaning the appeal to the First-tier Tribunal should not have succeeded.
The taxpayer could challenge HMRC’s decision by seeking a judicial review but the application must start in the Administrative Court, because the First-tier Tribunal had no powers in the area.
The tax department’s appeal was allowed., and the fixed penalties were reinstated.
