EM5125 - Penalties: Culpability: Neglect, Negligence and Negligent Conduct

The terms neglect, negligence and negligent conduct are interchangeable.

Before repeal by FA89, there was a definition of neglect in TMA70/S118 (1).

'Neglect means negligence or a failure to give any notice, make any return or to produce or furnish any document or other information required by or under the Taxes Acts.'

Baron Alderson in Blyth v Birmingham Waterworks Co, 1856, 11 Ex 781, p784, which was concerned with the law of tort says

Negligence is the omission to do something which a reasonable man, guided upon those considerations which ordinarily regulate the conduct of human affairs, would do, or doing something which a prudent and reasonable man would not do. The defendants might be liable for negligence, if, unintentionally, they omitted to do that which a reasonable person would have done, or did that which a person taking reasonable precautions would not have done.

We can assume that a reasonable person would, amongst other things

• comply with the requirements of the law by, for example, notifying their chargeability
• make, promptly, a complete and correct return of their income and gains when required to do so under statutory authority
• keep such records as are necessary to enable them to make accurate returns or prepare accurate accounts
• read carefully the notes supplied with the return form, so far as they affect their own circumstances
• seek professional help with matters, such as the preparation of accounts, which they are unable to cope with satisfactorily alone.