[2013] UKFTT 327 (TC)
TC02730
Appeal number: TC/2012/08163
INCOME TAX – Appeal – Procedure – Extension of time –
Application to appeal out of time refused
FIRST-TIER TRIBUNAL
TAX CHAMBER
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KENT COUNTY COUNCIL
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Appellant
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- and -
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THE COMMISSIONERS
FOR HER MAJESTY’S
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Respondents
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REVENUE &
CUSTOMS
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TRIBUNAL:
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SIR STEPHEN OLIVER QC
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Sitting in public in Ashford, Kent, on 28 October 2012
No attendance for the Appellant
Ms K Wheare for the Respondents
© CROWN COPYRIGHT 2013
DECISION
1.
This is an application for extension of time to appeal made by Kent
County Council (“the Appellant”) in their Notice of Appeal of 20 August 2012.
2.
The Appellant appealed to the Respondents on 2 July 2012 against a
Regulation 80 Determination that had been issued on 28 February 2012. The
Determination was that £704.20 was chargeable. The appeal to HMRC should have
been made by 28 March. The Appellant had informed the Respondents, on 2 July
2012 that, as the relevant employee was still working for the Appellant, the
tax to which the Determination related should be collected from his earnings.
HMRC wrote back to the Appellant on 26 July informing it that a late appeal
might be accepted if it advanced a reasonable excuse and showed that the appeal
had been made as soon as the excuse had ended.
3.
The Notice of Appeal to the Tribunal gave the following reasons as to
why the Appellant’s appeal was out of time:
“The responsibility for managing this type of
correspondence from HMRC is held by HRBC Control Team for Kent County Council. Kent County Council undertook a considerable reorganisation of the Human
Resources directorate, of which the HRBC Control Team was part; that culminated
in a significant number of redundancies and structural changes being made.
A review of the structure of the Control Team and
the management of it was undertaken and processes were being reviewed during
March when the notification was received. The new structure of the team with a
new manager was effective and unfortunately the requirement to undertake the
investigation and response to the correspondence was overlooked.
A response was provided to HMRC as soon as the error
was identified.”
4.
On 14 September 2012, the Tribunal notified both sides that the hearing
of the application to appeal out of time was fixed for 26 October 2012 in Ashford, Kent. On 10 October 2012, the Respondents served their bundles of papers for the
hearing.
5.
When the time came for the hearing, no representative for the Appellant
had arrived at the Tribunal. The Tribunal considered the position and decided
to proceed in the absence of the Appellant.
6.
Following a review of the background material and the correspondence
between the Appellant and HMRC, the Tribunal decided that it would not be
appropriate to exercise its power, in regulation 5(3) of the Tribunal Rules, to
extend time for appealing.
7.
The explanation given by the Appellant does not amount to a reasonable
excuse for the delay in making the appeal; nor does it give reasonable grounds
for extending time to appeal. The reorganisation of Kent County Council’s Human
Resources directorate should have been conducted in a manner that enabled the
Council to comply with its obligations owed to HMRC under the Taxes Management
Act. There was nothing special about the obligation to appeal against the
Regulation 80 Determination. It was simply overlooked. Moreover the Appellant
did nothing to alert either the Respondent or the Tribunal that it was not
going to attend the Hearing.
8.
There being no acceptable reasons for extending the time within which to
appeal, the Tribunal dismissed the Appellant’s Application.
9.
This document contains full findings of fact and reasons for the
decision. Any party dissatisfied with this decision has a right to apply for
permission to appeal against it pursuant to Rule 39 of the Tribunal Procedure
(First-tier Tribunal) (Tax Chamber) Rules 2009. The application must be
received by this Tribunal not later than 56 days after this decision is sent to
that party. The parties are referred to “Guidance to accompany a Decision from
the First-tier Tribunal (Tax Chamber)” which accompanies and forms part of this
decision notice.
SIR STEPHEN OLIVER
QC
TRIBUNAL JUDGE
RELEASE DATE: 3 June 2013
