Calltel Telecom Ltd & Anor v Revenue & Customs

Calltel Telecom Ltd & Anor v Revenue & Customs

Security for costs is ordered because the appellants are insolvent, Mr Gohir is funding the litigation for his own interests, there is no evidence the order would stifle the appeal, and justice requires protection of the Revenue's costs; CPR 52.9 applies to statutory appeals as of right, and compelling reasons exist to impose conditions for costs below.

Parties
Claimant: Calltel Telecom Ltd; Claimant: Opto Telelinks (Europe) Ltd; Defendant: HM Revenue & Customs
Jurisdiction
England and Wales
Judgment Date
06 June 2008
Procedural Posture
Appeal / Ruling on Applications for Security for Costs Pending Appeal
Outcome
Applications for security for costs granted.
Legal Topics
Security for Costs, VAT Appeals, Case Management, Appeals as of Right
Civil Procedure Tax Law Security for Costs VAT Appeals Case Management Appeals as of Right

Case Brief

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Parties

Calltel Telecom Ltd

Claimant

Opto Telelinks (Europe) Ltd

Claimant

HM Revenue & Customs

Defendant

Procedural Posture

Appeal / Ruling on Applications for Security for Costs Pending Appeal

Legal Issues

  1. 1 Whether security for costs should be ordered against appellants in a VAT appeal
  2. 2 Whether security for costs would stifle the appeal
  3. 3 Whether the appellants' insolvency, caused by refusal of VAT credit, is a relevant factor

Ratio Decidendi

Security for costs is ordered because the appellants are insolvent, Mr Gohir is funding the litigation for his own interests, there is no evidence the order would stifle the appeal, and justice requires protection of the Revenue's costs; CPR 52.9 applies to statutory appeals as of right, and compelling reasons exist to impose conditions for costs below.

Court Disposition

Applications for security for costs granted.

Orders

  • Security for costs of £175,000 split between appeal (£60,000) and tribunal costs (£187,000) to be paid within 28 days.
  • Appeal to be struck out if security not paid within 28 days.