Helen Adams and Youcef Toumi (BDO) examine the current state of the legislation and case law on reasonable excuse, including how the concept may alter in future.
Reasonable excuse (RE) in tax is a longstanding concept. RE is of particular relevance to penalties that HMRC may charge when a taxpayer fails to comply with their obligations. In particular HMRC imposes penalties on taxpayers if they fail before the statutory deadline to:
notify HMRC of a liability to tax;
pay tax; or
file a return.
However HMRC is unable to assess a penalty on a taxpayer for any of these failures where the taxpayer had a RE and where the failure is subsequently rectified without undue delay after the excuse ends. It is therefore an important way for taxpayers to mitigate penalties where they failed to do something...
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Helen Adams and Youcef Toumi (BDO) examine the current state of the legislation and case law on reasonable excuse, including how the concept may alter in future.
Reasonable excuse (RE) in tax is a longstanding concept. RE is of particular relevance to penalties that HMRC may charge when a taxpayer fails to comply with their obligations. In particular HMRC imposes penalties on taxpayers if they fail before the statutory deadline to:
notify HMRC of a liability to tax;
pay tax; or
file a return.
However HMRC is unable to assess a penalty on a taxpayer for any of these failures where the taxpayer had a RE and where the failure is subsequently rectified without undue delay after the excuse ends. It is therefore an important way for taxpayers to mitigate penalties where they failed to do something...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
