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Is ignorance ever reasonable?
Key points
- Is there a reasonable excuse for a failure to notify file or pay tax on time?
- A reasonable excuse can result in no penalties if a failue is rectified without undue delay.
- Although case law is variable and fact specific ignorance may be a reasonable excuse.
- Does the taxpayer’s situation turn on a complex point rather than a simple matter such as the basic obligation to file a tax return?
- Ignorance may be a reason for a failure to correct by 30 September 2018 but much will depend on what the taxpayer knew.
- Did the ignorance relate to the requirement to correct or to existence of an understatement of UK tax?
Everyone will have a reaction to the question posed by this article’s title. No doubt readers’ answers may vary and tax professionals will probably add a caveat: ‘Well it depends on the facts or circumstances…’ We are all aware that...
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