Lack of English is not a reasonable excuse

Not being able to speak English and relying on an accountant are not reasonable excuses for late payment of a tax penalty, a tribunal has ruled.

Tian Chai Chen, the owner of a Chinese restaurant in Dunblane, Scotland, said he could not speak or read English and relied on his accountant to sort his tax affairs.

When Chen was fined for “negligently” submitting incorrect tax returns for 2007-2008 and 2008-2009, he appealed although his appeal was two years late.

Chen argued that his inability to speak English meant he relied on his accountant who read him correspondence from HMRC every six months or so.

Tribunal judge J Gordon Reid [Tian Chai Chen v HMRC] said that this twice-yearly correspondence showed a “complete disregard for the proper management of his business affairs”. This meant Chen did not have a reasonable excuse for his late appeal against the penalties.

“I have considered all relevant circumstances put before me, and while I have some sympathy for Mr Chen’s position, that sympathy is limited and is not sufficient, having regard to those circumstances, to grant permission to Mr Chen for an appeal to be made or notified some two years after the expiry of the statutory period,” the judge said.