While most of us were winding down to the festive season, the result of HMRC v Donaldson will have left many taxpayers grimacing and hardly full of seasonal good cheer. For those that had become the subject of an HMRC assessment for daily penalties for late submission of income tax returns, the last year will have been quite the rollercoaster in terms of delays and uncertainty as their fate hanged on the conclusion of this case. Many of you may by now be aware that this case culminated early in December 2014, bringing the rollercoaster to a dramatic and perhaps unexpected end. This blog will look into the background of the case and HMRC’s new penalty powers. If you would like to familiarise yourself with the particulars of the case an analysis can be found here.