Reasonable excuse for non-payment during judicial review proceedings

The taxpayer appealed against surcharges (TMA 1970 s 59C) in respect of late paid tax. These related to the tax due in closure notices issued to the taxpayer for 2001-02 and 2002-03.

The taxpayer said he had a reasonable excuse for not paying the tax and that he paid it without unreasonable delay once that reasonable excuse came to an end. In essence he said his application for judicial review – against the closure notices - gave him a reasonable excuse while it was in progress and that when the Supreme Court refused his application to appeal he paid the tax within days.

The First-tier Tribunal and Upper Tribunal refused his appeal against the surcharges so he appealed to the Court of Appeal.

Lady Justice Whipple in the Court of Appeal delivered the judgment. On the taxpayer’s assertion that the Upper Tribunal had erred in nature...