Key Facts
- •Mr Marano appealed penalty assessments and a discovery assessment for late submission of a self-assessment tax return for 2012/13.
- •Notices and assessments were issued via HMRC's automated system.
- •The dispute centered on whether HMRC needed to prove an "officer of the Board"'s involvement (per section 8 TMA 1970 and Schedule 55, paragraph 18).
- •Section 103 Finance Act 2020 (retroactive) was central to the appeal, aiming to validate HMRC's automated processes.
Legal Principles
Section 8 TMA 1970 requires a notice to file a return to be given by an officer of the Board. However, it doesn't mandate that the officer be identified in the notice; authorization by an HMRC officer suffices. The burden of proof lies with HMRC.
HMRC v Rogers & Shaw [2019] UKUT 406 (TCC), paragraphs 8, 9, 10, 12
Schedule 55, paragraph 18 requires HMRC to assess and notify penalties. The meaning of "HMRC" is defined in paragraph 27(3) and further clarified via the Interpretation Act 1978 and CRCA 2005 as including Commissioners and officers.
Schedule 55, paragraphs 18(1), 27(3); Interpretation Act 1978; CRCA 2005, section 4(1)
Section 103 FA 2020 allows HMRC to perform any act an officer could, including automated processes, and this has the same legal effect as if done by an officer. This applies retrospectively (with exceptions).
Finance Act 2020, section 103
Statutory interpretation requires identifying the meaning of words in context, considering the Act's purpose and scheme, and avoiding absurd results. Contemporaneous materials (ministerial statements, technical notes, explanatory notes) can aid interpretation, but their weight depends on the circumstances.
PACCAR v Competition Appeal Tribunal and Others [2023] UKSC 28
Outcomes
Appeal dismissed.
Section 103 FA 2020 removes the need for HMRC to prove officer involvement in automated processes, as long as the notice originated from HMRC. The court rejected the narrower interpretation of section 103, finding it to be meaningless and purposeless. The court emphasized the broad and general terms of section 103, highlighting its intention to validate HMRC's automated functions.