Was the taxpayer’s conduct objectively reasonable?

In 2016 HMRC issued closure notices to the taxpayer for 2001-02 and 2002-03. The taxpayer said the notices were invalid and did not pay the tax nor did he appeal against them. HMRC threatened bankruptcy proceedings to recover the alleged debt.

The taxpayer applied for judicial review challenging HMRC’s ability to begin bankruptcy proceedings against him. His application failed. The taxpayer then paid the tax due.

Meanwhile HMRC issued surcharge notices (TMA 1970 s 59C). There was a dispute as to the validity of these notices and HMRC accepted some were invalid. However the First-tier Tribunal decided the remaining notices were valid. It went on to find the taxpayer had produced no evidence as to why he had applied for judicial review. He had no reasonable excuse for paying the tax late and dismissed the taxpayer’s appeal. He appealed saying the tribunal was wrong...