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K Donaldson v CRC, Court of Appeal, 18 July 2016
Validity of daily penalties under FA 2009 Sch 55 para 4
The taxpayer’s appeal against daily penalties amounting to £900 for a late filed tax return was allowed by the First-tier Tribunal. This was on the ground that HMRC had not given proper notice to the taxpayer from what date the penalties would be imposed. The Upper Tribunal allowed HMRC’s appeal.
The Master of the Rolls in the Court of Appeal agreed with the Upper Tribunal that it could not have been the draftsman’s intention that HMRC should have to make individual penalty decisions for every taxpayer who fails to submit the form for more than three months after the due date. Rather HMRC ‘decide in advance that all taxpayers who default for more than three months should suffer daily penalties’.
On whether HMRC had decided that the penalty was payable the judge accepted that ‘a generic...
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