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Reasonable excuse for non-payment and partner payment notice (PPN) fails

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    Reasonable excuse for non-payment and partner payment notice (PPN) fails

    Reasonable excuse for non-payment and partner payment notice (PPN) fails

    http://financeandtax.decisions.tribu...47/TC05471.pdf

    O'Donnell v Revenue and Customs (INCOME TAX/CORPORATION TAX : Penalty) [2016] UKFTT 743 (TC) (04 November 2016)

    The FTT has held that penalties for late payment of assessments raised under partner payment notices (PPN’s), were validly raised for participation in Ingenious Film Partners LLP and Ingenious Film Partners 2 LLP.

    Mr O’Donnell, the LLP member in question, had originally been advised by HMRC that the due date for payment was 29 July 2015, but in September 2015, he was advised the due date was 26 August 2015. His genuine belief was that he thought the payment was not due because HMRC had failed to open an enquiry under TMA 1970 Sch 1A. At the time of making the representations against the PPN, he was unaware of the De Silva litigation ([2016] EWCA Civ 40), which considered similar issues.

    After his representations were rejected, he wrote again and asked whether his case could be stood behind the De Silva appeal, which is to be heard before the Supreme Court. HMRC did not receive his further letter.

    The FTT considered, however, that Mr O’Donnell’s contentions that the correspondence on the payment date had been confusing and that he had asked for his case to be stayed did not amount to a reasonable excuse for non-payment in his case, especially as he had not sought judicial review. His case could not be stood behind De Silva as that case did not relate to the issue of penalties and reasonable excuse.


    Extract below from AccountingWeb : may require registration
    The case (O’ Donnell v HMRC TC05471) concerned two accelerated partner payment notices (PPN), which are the equivalent to accelerated payment notices (APN) for a member of partnership. The rules for issuing a PPN and payment of the tax demanded are identical for an APN in all material facts.

    Once an APN has been issued it is very difficult to halt the demand for tax, as the APN (or PPN) cannot be directly appealed. The only two possible routes for the taxpayer are; to launch a judicial review (which is very expensive), or appeal against a penalty for late payment. The taxpayer in this case took the second option, and failed.

    Appeal against late paid PPN fails | AccountingWEB

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