Section 27 — Finance Act 2003: Exceptions from section 26

Exceptions from section 26 27 1 A person is not liable to a penalty under section 26 if he satisfies—

a the Commissioners, or b on appeal, an appeal tribunal, that there is a reasonable excuse for his conduct.

2 For the purposes of subsection (1) none of the following is a reasonable excuse—

a an insufficiency of funds available to any person for paying any relevant tax or duty or any penalty due;

b that reliance was placed by any person on another to perform any task;

c that the contravention is attributable, in whole or in part, to the conduct of a person on whom reliance to perform any task was so placed.

3 Where, by reason of conduct falling within subsection (1) of section 26 in the case of any relevant tax or duty, a person—

a is prosecuted for an offence, b is given, and has not had withdrawn, a demand notice in respect of a penalty to which he is liable under section 25, or c is liable to a penalty imposed upon him under any other provision of the law relating to that relevant tax or duty, that conduct does not also give rise to liability to a penalty under section 26 in respect of that relevant tax or duty.

4 A person is not liable to a penalty under section 26 in respect of any conduct, so far as relating to import VAT, if in respect of that conduct—

a he is liable to a penalty under any of sections 62 to 69A of the Value Added Tax Act 1994 (c. 23) (penalty for contravention of statutory requirements as to VAT), or b he would be so liable but for section 62(4), 63(11), 64(6), 67(9), 69(9) or 69A(7) of that Act (conduct resulting in conviction, different penalty etc).