Overseas postal system fails the taxpayer

The taxpayer submitted his tax returns for 2008-09 to 2010-11 late. HMRC charged penalties against which the taxpayer appealed. HMRC said it sent the 2008-09 and 2009-10 penalty notices to the taxpayer at his Philippines address but the taxpayer said he had not received them although he had received a penalty for a second fixed penalty for 2008-09. He explained that the postal services in that country was chaotic and letters often went astray. The 2010-11 notice was posted to him in Italy but the taxpayer again said he had not received it.

The First-tier Tribunal found as a fact that the taxpayer had not received the notices for 2009-10 and 2010-11. HMRC was unable to show the notices had been served on the taxpayer although the tribunal accepted it was ‘likely’ the notices had been issued. It also found he had not received the first...