First-tier Tribunal (Tax)

[2011] UKFTT 53 (TC)

TC00931

Appeal number: TC/2010/02736

CIS - reasonable excuse for non compliance - bad advice found not a reasonable excuse - appeal dismissed

FIRST-TIER TRIBUNAL

TAX

R P BUILDING SERVICES LTD Appellant

- and -

THE COMMISSIONERS FOR HER MAJESTY’S

REVENUE AND CUSTOMS Respondents

TRIBUNAL:  TRIBUNAL JUDGE MANUELL MRS SHEILA CHEESMAN

Sitting in public at The Tribunal Service, Copthall House, 9 The Pavement, Grove Road, Sutton, Surrey, SM1 1DA on 21 September 2010.

 Mr Ioan Pal, Miss N Epuric and Mr Fotos Kaittani  for the Appellant

Mr H O’Leary,  HMRC Presenting Officer, for the Respondents

© CROWN COPYRIGHT 2011

DECISION

1.       The Appellant’s representatives addressed the Tribunal.  Mr Ioan Pal is the Appellant’s Director and gave evidence.

2.       Mr O’Leary relied on his skeleton argument, to which the Tribunal refers.

The Tribunal found

3.       The Appellant accepted that there had been all of the CIS compliance breaches alleged by the Respondents, i.e., the CIS returns due for the months ended 5 October 2007 to 5 April 2008 were not filed until 26 August 2009:

4.       The Appellant said that he was new to the United Kingdom and was unfamiliar with the procedures.  He believed that he had been compliant and had relied on his first advisers to guide him.  He discovered that their advice was bad.  He obtained new advisers who assisted him to complete the missing CIS returns:

5.       There was no loss of public revenue:

6.       The Appellant considered that the statutory penalties were excessive:

7.       The Tribunal has no discretion available to it in such circumstances, despite any impact of the penalties on the Appellant’s business.  There was a long and unsatisfactorily explained delay in full compliance.  Especially where the Appellant was undertaking business in a new country, it was for him to ensure compliance.  Bad advice is a matter for him to pursue as he may choose.  The Tribunal finds that there was no reasonable excuse for the compliance failures and upholds the penalties of £9,300.

8.       This document contains full findings of fact and reasons for the decision. Any party dissatisfied with this decision has a right to apply for permission to appeal against it pursuant to Rule 39 of the Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009. The application must be received by this Tribunal not later than 56 days after this decision is sent to that party.  The parties are referred to “Guidance to accompany a Decision from the First-tier Tribunal (Tax Chamber)” which accompanies and forms part of this decision notice.

TRIBUNAL JUDGE MANUELL

RELEASE DATE: 17 JANUARY 2011