QC wins appeal over excessive penalties

Tager & Anor v Revenue and Customs [2018] EWCA Civ 1727 concerned an appeal by Romie Tager QC, a self-employed barrister, against penalties of £1,075,210 of unpaid income and inheritance tax (IHT). This is the first case which has considered penalties imposed under the provisions of Finance Act 2008 (FA 2008), Sch 36, para 50, in relation to failure to provide information.

Tager failed to comply with his obligations as a taxpayer in relation to his personal tax affairs and the estate of his late father over several years. In April 2012 he filed his income tax returns for 2008/09, 2009/10 and 2010/11. The returns should have been filed by 31 January 2010, 2011 and 2012 respectively. On 28 August 2012, HMRC opened enquiries into each of those returns under Taxes Management Act 1970 (TMA 1970), section 9A. HMRC also made enquiries and requests for further information arising out of the IHT account which he had belatedly filed in January 2009 (nearly three years after the due date).