This week's opinion

The tax tribunals contribute to produce judgments that throw new light on the Taxes Management Act and cause us to stop and think about some of the fundamentals we have taken for granted for years. Take D J Wood (TC6339).

On the face of it this was an open and shut case. The taxpayer’s returns were submitted late for four consecutive years; there was no reasonable excuse and no special circumstances. Yet the tribunal cancelled all the penalties (more than £3 000). What was going on? The answer goes back to a fundamental point about the tax system that is often overlooked. There is no freestanding obligation for anybody to submit a tax return. There are obligations to notify chargeability but a return is only required in response to a notice from HMRC to file one. In this case although the taxpayer did ultimately file returns there was no evidence...