Barrett
| Jurisdiction | UK Non-devolved |
| Judgment Date | 30 August 2019 |
| Neutral Citation | [2019] UKFTT 560 (TC) |
| Date | 30 August 2019 |
| Court | First Tier Tribunal (Tax Chamber) |
[2019] UKFTT 560 (TC)
Judge Christopher Staker
The appellant appeared in person
Joanna Batterby, litigator of HM Revenue and Customs' Solicitor's Office, appeared for the respondents
Income tax – Partner payment notice – Penalty.
[1] This is an appeal against penalties imposed pursuant to s 226 of the Finance Act 2014 for failure to make the accelerated partner payments due under partner payment notices (“PPNs”) issued pursuant to Schedule 32 of that Act.
[2] The Appellant was at material times a partner in the partnership Verona Film Partners (“VFP”).
[3] On 8 August 2012, 3 October 2013, 19 May 2014 and 2 June 2015 respectively, HMRC gave notice, relying on s 12AC of the Taxes Management Act 1970 (“TMA”), that it was opening enquiries into the partnership tax returns of VFP for 2010–11, 2011–12, 2012–13 and 2013–14.
[4] In a letter to the Appellant dated 1 October 2015, HMRC advised that they would in the following weeks be sending the Appellant PPNs requiring him to make payments relating to his share of VFP's use of the tax avoidance scheme known as Further Film Sales & Leaseback Business Scheme (scheme reference number 95417331). The letter explained that the Appellant had no right of appeal against the PPNs, but that he could make representations objecting to the PPNs if he disagreed with them.
[5] In a letter to HMRC dated 15 October 2015, the Appellant stated that the HMRC letter came as a complete shock to him as he was not even aware that VFP were subject to compliance checks. He asked HMRC a number of questions, including as to when the compliance checks were opened and the issues that were being checked by HMRC. He said that his health and economic circumstances prevented him from making accelerated payments.
[6] On 20 November 2015, HMRC sent the Appellant four PPNs relating to income tax for tax years 2010–11, 2011–12, 2012–13 and 2013–14 respectively.
[7] In a letter to HMRC dated 26 November 2015, the Appellant stated that he had not yet received a reply to his letter dated 15 October 2015, and asked some additional questions.
[8] On 18 December 2015, HMRC sent the Appellant four PPNs relating to National Insurance contributions for tax years 2010–11, 2011–12, 2012–13 and 2013–14 respectively.
[9] In a letter to HMRC dated 18 January 2016, the Appellant's agent made representations against the 20 November 2015 PPNs.
[10] In a letter to HMRC dated 15 February 2016, the Appellant's agent made representations against the 18 December 2015 PPNs.
[11] In a letter dated 26 May 2016, HMRC confirmed the 20 November 2015 PPNs.
[12] In a letter to HMRC dated 10 July 2016, the Appellant stated that he had been suffering from health problems which had prevented him from responding to HMRC, and he requested further time to take advice.
[13] On 1 August 2016, HMRC issued penalties under s 226(2) of the Finance Act 2014 for failure to make on time the accelerated payments due under the 20 November 2015 PPNs.
[14] On 1 August 2016, the Appellant appealed against these penalties.
[15] In a letter dated 17 August 2016, HMRC withdrew the 18 December 2015 PPNs relating to tax years 2010–11, 2011–12 and 2012–13, and confirmed the 18 December 2015 PPN relating to tax year 2013–14.
[16] In letters dated 5 September 2016, HMRC dismissed the Appellant's appeals against the 1 August 2016 penalties.
[17] In a letter dated 26 September 2016, the Appellant requested a review of that decision.
[18] On 10 October 2016, HMRC issued a penalty under s 226(2) of the Finance Act 2014 for failure to make on time the accelerated payment due in respect of 2013–14 tax year under the 18 December 2015 PPN. On 28 October 2016, the Appellant appealed against that decision.
[19] On 8 November 2016, the Appellant's agent provided representations in support of the review of the 18 December 2015 PPN.
[20] In a review decision dated 15 November 2016, HMRC upheld the decision to dismiss the appeal against the 1 August 2016 penalties.
[21] In a decision dated 22 November 2016, HMRC dismissed the appeal against the 10 October 2016 penalty.
[22] In a letter to the Appellant dated 1 December 2016, HMRC provided a response to the Appellant's 5 October 2015 and 26 November 2015 letters.
[23] In letters to HMRC dated 12, 20 and 31 December 2016, the Appellant stated that he challenged the formal validity of the PPNs.
[24] On 14 February 2017, HMRC issued penalties under s 226(3) of the Finance Act 2014 for failure to make on time the accelerated payments due under the PPNs within 5 months of the due date.
[25] On 8 March 2017, the Appellant chased a response to his December 2016 challenge to the validity of the PPNs.
[26] In a review decision dated 17 March 2017, HMRC upheld the decision to dismiss the appeal against the 10 October 2016 penalty.
[27] In letters dated 31 March 2017, HMRC dismissed the Appellant's appeals against the 14 February 2017 penalties.
[28] In letters to HMRC dated 18 and 24 April 2017, the Appellant stated that he challenged the formal validity of the PPNs.
[29] In a letter to the Appellant dated 22 May 2017, HMRC rejected the claim that the PPNs were invalid.
[30] In a review decision dated 22 May 2017, HMRC upheld the decision to dismiss the appeal against the 14 February 2017 penalties.
[31] On 14 June 2017, HMRC issued penalties under s 226(4) of the Finance Act 2014 for failure to make on time the accelerated payments due under the PPNs within 11 months of the due date.
[32] On 20 July 2017, following representations from the Appellant, HMRC withdrew the 18 December 2015 PPN relating to tax year 2013–14, and withdrew the penalty for failure to pay on time the accelerated payment under that PPN. In a letter dated 31 July 2017, HMRC informed the Appellant that it considered that the remaining PPNs were valid.
[33] In further review decisions dated 8 August 2017, HMRC upheld the decision to dismiss the appeal against the 14 February 2017 penalties.
[34] In letters dated 19 October 2017, HMRC dismissed the Appellant's appeals against the 14 June 2017 penalties.
[35] In a review decision dated 8 January 2018, HMRC upheld the decision to dismiss the appeal against the 14 June 2017 penalties.
[36] On 12 January 2018, the Appellant commenced the present Tribunal proceedings to appeal against the 14 June 2017 penalties. At...
To continue reading
Request your trial