Daniel Witton v The Commissioners for HMRC

Daniel Witton v The Commissioners for HMRC

The Tribunal determined that HMRC bears the burden of proof to establish DS Limited's wilful failure to deduct PAYE and NICs. The late application to admit evidence was allowed as the prejudice to HMRC outweighed any prejudice to the Appellant, and the barring application was refused because HMRC had a realistic prospect of defending the appeal. Costs were awarded to the Appellant for HMRC's unreasonable conduct in the barring application and the objection to the witness statement admission.

Parties
Appellant: Daniel Witton; Respondents: The Commissioners for His Majesty’s Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
13 June 2024
Procedural Posture
Tax Appeal / Interlocutory Applications Prior to Substantive Hearing
Outcome
HMRC's application to admit additional evidence allowed; Appellant's barring application refused; Appellant's costs application allowed in part.
Legal Topics
PAYE Liability Recovery, National Insurance Contributions, Burden of Proof, Admission of Evidence, Costs in Tribunal Proceedings, Wilful Failure to Deduct Tax, Case Management Powers
Tax Law Civil Procedure PAYE Liability Recovery National Insurance Contributions Burden of Proof Admission of Evidence Costs in Tribunal Proceedings Wilful Failure to Deduct Tax +1 more

Case Brief

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Parties

Daniel Witton

Appellant

The Commissioners for His Majesty’s Revenue and Customs

Respondents

Procedural Posture

Tax Appeal / Interlocutory Applications Prior to Substantive Hearing

Legal Issues

  1. 1 Whether HMRC should be barred from proceedings for lack of evidence
  2. 2 Whether HMRC should be permitted to admit additional evidence
  3. 3 Whether Appellant is entitled to costs for interlocutory applications

Ratio Decidendi

The Tribunal determined that HMRC bears the burden of proof to establish DS Limited's wilful failure to deduct PAYE and NICs. The late application to admit evidence was allowed as the prejudice to HMRC outweighed any prejudice to the Appellant, and the barring application was refused because HMRC had a realistic prospect of defending the appeal. Costs were awarded to the Appellant for HMRC's unreasonable conduct in the barring application and the objection to the witness statement admission.

Court Disposition

HMRC's application to admit additional evidence allowed; Appellant's barring application refused; Appellant's costs application allowed in part.

Orders

  • HMRC permitted to amend list of documents and admit second witness statement of Ms McGuigan and exhibits.
  • Appellant's application to bar HMRC from proceedings refused.