Codu Computer Ltd
| Jurisdiction | UK Non-devolved |
| Judgment Date | 28 February 2011 |
| Neutral Citation | [2011] UKFTT 186 (TC) |
| Date | 28 February 2011 |
| Court | First Tier Tribunal (Tax Chamber) |
[2011] UKFTT 186 (TC)
Dr Christopher Staker (Tribunal Judge) (Chairman), Mrs Susan Lousada (Tribunal Member)
Company tax - penalties for late returns (Finance Act 1998, Finance Act 1998 schedule 18 subsec-or-para 17Sch. 18, para. 17) - reasonable excuse (Taxes Management Act 1970, Taxes Management Act 1970 section 118 subsec-or-para 2s. 118(2)) - returns submitted within deadline but rejected by R & C Commrs as accounts were not signed - burden on R & C Commrs to establish that returns were filed late and therefore to establish in this case that the appellant was required to submit signed accounts - appeal allowed
1.This is an appeal by the Appellant against the imposition of two £100 penalties under Finance Act 1998 schedule 18 subsec-or-para 17paragraph 17(2) of Schedule 18 of the Finance Act 1998, in respect of the late filing by the Appellant of its company tax returns for the accounting periods ending 25 February 2009 and 28 February 2009 respectively.
2.The material submitted by both the Appellant in support of the appeal and by HMRC in response is unfortunately thin. The Tribunal does not have as much material as it would have liked.
3.The facts appear to be as follows, some of these facts being asserted by one or other of the parties and apparently not contested by the other. The Appellant was incorporated on 26 February 2008. The company tax returns for the accounting periods ending 25 February 2009 and 28 February 2009 were both due no later than 28 February 2010. Before the expiry of this deadline, the returns were submitted by the Appellant. However, on 12 March 2010, HMRC rejected the returns on the ground that they were incomplete, on the basis that certain documents accompanying the returns were not signed as required. These documents that should have been signed are said in the HMRC statement of case to have been the director's report and balance sheet, although the Appellant's notice of appeal suggests that the unsigned documents were the "accounts". For convenience, reference is made below simply to the "relevant documents".
4.The returns were subsequently resubmitted by the Appellant, and were again rejected by HMRC on 1 April 2010. Eventually the returns were validly submitted online on 5 May 2010.
5.Even if the returns were submitted late, under Taxes Management Act 1970 section 118 subsec-or-para 2s. 118(2) of the Taxes Management Act 1970, the Appellant would be deemed to have submitted them on time if...
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Weekly Tax Update - Monday, 9th May 2011
...deliver the tax return, there is nothing to say that accompanying financial statements need to be signed. www.bailii.org/uk/cases/UKFTT/TC/2011/TC01055.html 3.2. OECD Model Tax Convention and definition of Beneficial The concept of "beneficial owner" found in Articles 10, 11 and 12 of the O......