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For an overview of the concept of reasonable excuse, see A4.568. Online filing and postal issues have given rise to many penalty disputes regarding reasonable excuse, and these commonly turn on the reliability of the evidence as to the primary facts.

There is potential for failure on both the part of HMRC and the taxpayer (and a third possibility of an agent's failure if one is engaged).

On the one hand, as discussed at A4.569, HMRC bears the burden of proving that the taxpayer defaulted on the obligation in question. HMRC may be able to discharge that burden, at least on a prima facie basis, by referring to their records.

HMRC must establish:

1. Ìý

   (a)ÌýÌýÌýÌý that it served the required notice¹ giving rise to the filing or payment obligation in question, and

2. Ìý

   (b)ÌýÌýÌýÌý that the obligation was not met (for example, the return or payment was not made in time)

As to (a) above, if taxpayers say that they did not receive a notice, the Tribunal will consider 'rebuttal