A small business, Auntie’s Café, was challenging two fixed penalties of
£1,000 each for filing its accounts late on the grounds that the penalties were
inconsistent with the Human Rights Convention.
But special commissioner Howard Nowlan said its rights had not been infringed
as the penalty regime was compatible with the EU legislation.
Nowlan ruled that the penalty regime was there to ensure compliance with the
tax system. As such compliance was in the public interest, the penalties were
proportionate to the offence.
‘This is a common sense judgment. The penalty regime is there to penalise
non-compliance and push out tax evaders and this supports that,’ said Kevin
Hindley, associate tax director at Chiltern.
A number of advisers have considered using unconventional defences, such as
human rights, to challenge HMRC penalties.
Does Darwin's theory apply to taxation? Colin ponders...
The UK tax gap fell in 2014-15 to its lowest-ever level of 6.5%, revealed official statistics published today
Changes to the tax system is urged to support the growth of entrepreneurs, found a report from the Grant Thornton UK, the Institute of Directors, and the Prelude Group
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states