APN Penalty - uncollectible

[webberg]

Thanks to one of our clients, we are aware that a FTT case that was decided on 17th February, came to the conclusion that HMRC should not be able to collect a penalty for non payment of APN where there is a JR running and not yet finally decided.

Surprising on two levels perhaps.

First that the FTT considered it had jurisdiction.

Second that there appears to be little reference to the Administrative Court process and procedure.

Normally these decisions are published within about a week to 10 days. Be interesting to see how long this one takes.

[Whysoserious]

Devil in the detail

I guess the devil will be in the detail once it's made public. I'd be interested to know if the FTT rules that HMRC cannot apply penalties to an unpaid APN while under JR, or HMRC can apply the penalty (with interest) but are unable to enforce collection until after JR?

[Dylan]

I guess the devil will be in the detail once it's made public. I'd be interested to know if the FTT rules that HMRC cannot apply penalties to an unpaid APN while under JR, or HMRC can apply the penalty (with interest) but are unable to enforce collection until after JR?

It is a meaningless soundbite without any context, click bait.

Also depends on the details of the JR, if they can enforce payment of the whole APN amount then who cares about the penalties, least of the problem.

[Whysoserious]

It is a meaningless soundbite without any context, click bait.

Also depends on the details of the JR, if they can enforce payment of the whole APN amount then who cares about the penalties, least of the problem.

A 15% penalty on +£200,000 APN is a problem.

[Dylan]

A 15% penalty on +£200,000 APN is a problem.

I am talking about a scenario where you have JR but the APN is still collectible. in that scenario there are two possibilities:

a) If you've agreed a mechanism to pay the 200k then the penalties won't be accruing in the first place so non collection is irrelevant
b) If you haven't agreed a payment plan in order to have penalties begin to build up and they can enforce collection on the principal sum of 200k then the penalties are the least of your issues, you have 200k to find and fast.

The soundbite doesn't suggest for a moment that the penalties don't accrue, just that they aren't collectible. And I maintain that depending on circumstance that could well be irrelevant.

[webberg]

I'd agree that until we see the decision, it's a bit of a curate's egg.

This decision will be important to all those who have not paid an APN because they are part of a JR.

[ScottW]

An appeal against enforcing payment of penalties associated with an APN was lodged and the following email was received;


HM Courts & Tribunals Service

This appeal has been allocated to the Standard category.

The Tribunal DIRECTS that unless the Appellant or the Respondents object within 14 days of the date of this letter then …

The appeal shall be stayed and all time limits extended until 60 days after the determination of the underlying Judicial Review proceedings, in the High Court. Either party can apply at any time for the stay to be lifted.

Please inform the Tribunal when the case behind which the Appeal has been stayed has been decided.

[ireland2013]

Has decision been published yet?

Just wondering has this decision been published yet?

[webberg]

Just wondering has this decision been published yet?

The piece from ScottW looks to be about it.

[ScottW]

The piece from ScottW looks to be about it.

Received as regards appealing penalties on the Edge scheme.