In William Archer v HMRC [2022] UKUT 00061, the Upper Tribunal (UT) dismissed an appeal by Mr Archer against the penalty surcharge notice issued by HMRC for £1.4 million in relation to unpaid tax of approximately £14 million. There was no evidence to show that the belief that the Closure Notices were invalid was the reason for the non-payment of tax.

The UT found that the FTT had erred in law in concluding that Mr Archer should have proceeded with an appeal to the FTT against the notices instead of seeking a judicial review. The FTT had also wrongly concluded that the tax and interest would have remained payable despite an appeal. These errors meant the FTT could not have safely concluded that there was no reasonable excuse. As a result, the UT remade the decision.

Upon examining the facts, the UT found that:

The appeal was dismissed.

Useful guides on this topic

Closure Notices
When does HMRC issue a Closure Notice? Can a taxpayer demand one? Are there appeal rights? 

How to appeal a tax penalty
What are the steps in making an appeal? What should your appeal cover? What does recent case law say on this topic?

Grounds for Appeal: Reasonable excuse
What is considered to be a 'reasonable excuse' when a taxpayer makes an appeal against a tax compliance failure?

External links

R (oao William Archer) v HMRC [2017] EWCA Civ 1962

William Archer v HMRC [2020] TC0288 

William Archer v HMRC [2022] UKUT 00061

 


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