Was the penalty imposed for late payment proportionate?

After acquiring a property in Glasgow the taxpayer filed a land and buildings transaction tax return and paid the tax due late 41 days late. Revenue Scotland imposed penalties of £100 – for the late return and £1 527 – for the late paid tax. The taxpayer appealed saying the £1 527 penalty was excessive.

The First-tier Tribunal for Scotland said a ‘simple insufficiency of funds’ which the taxpayer had put forward as an excuse for late payment was not enough unless it was attributable to events outside the taxpayer’s control. However the company had not suggested this was the case.

The tribunal considered whether there were special circumstances which could encompass a situation in which it would be unfair for the taxpayer to pay the whole penalty. This appeared to be the argument put forward by the taxpayer in this case. The judge...