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Failure to pay tax because of lack of awareness

10 November 2019
Issue: 4720 / Categories: Tax cases

Tysim Holdings Ltd (TC7389)


The taxpayer owned a flat in London. It should have submitted annual tax on enveloped dwellings returns and paid tax on the dwelling for 2015-16 2016-17 and 2017-18. However it was unaware of the regime and therefore filed the returns and made late payments of the tax due. HMRC imposed penalties. The taxpayer appealed saying it had not known about its obligations.

The First-tier Tribunal said the company chairman’s assertion that the fact he was out of the country when the annual tax on enveloped dwellings regime was introduced was not a reasonable excuse. Although the chairman who was non UK-resident had been retired for some years it was clear he was still actively involved in the company’s affairs. The tax had been announced in 2012 and implemented in 2013 but it seemed the company did not realise it was liable...

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