News - taxcase4

Humanly ok

The appellant company was persistently late in filing its corporation tax returns. HMRC imposed fixed penalties in respect of two periods for which the company had no taxable profits.
The taxpayer appealed on the basis solely that the penalties were inconsistent with its rights under the European Convention on Human Rights Protocol 1 art 1 (entitlement to peaceful enjoyment of possessions). The Special Commissioner decided that the fixed penalties did not infringe the appellant's rights. The relevant factors were whether the deprivation of property i.e. penalty was justified because it was effected under legislation that was in the public interest and that legislation was required for collection of tax and penalties. It was clear that some penalty system was necessary for the efficient running of the system. HMRC had safeguards to cover postal delays and reasonable excuse and the penalties were themselves very...