An appeal against HMRC’s decision to refuse a claim for ‘special relief’ was allowed, as HMRC failed to consider whether the excessiveness of a tax determination was unreasonable.
The appellant, who had submitted tax returns for previous years, was issued with notices to file tax returns for 2005/06 and 2006/07 by HM Revenue and Customs (HMRC). The appellant did not receive the notices. HMRC imposed penalties for late submission of the returns for both years, and also surcharges for 2006/07.
HMRC made determinations (under TMA 1970, s 28C) for 2005/06 and 2006/07 in September 2009. The appellant submitted paper returns for those tax years in September 2011. HMRC informed the appellant that he was out of time for displacing the determinations, because the tax returns were submitted out of time.
A claim for special relief (under TMA 1970, Sch 1AB) was submitted to HMRC in October 2013.
