Viktor Mlekanov v The Commissioners for HMRC

Viktor Mlekanov v The Commissioners for HMRC

The Tribunal has no jurisdiction to entertain the appeal against the assessment of duty due to the effect of the deeming provision; the goods are deemed imported for commercial purposes and forfeited. However, for the penalty, the Tribunal must assess the taxpayer's actual intention and reasonable excuse. Mr Mlekanov's mistaken belief about the law and his honest conduct constituted a reasonable excuse, so the penalty is reduced to zero.

Parties
Appellant: Viktor Mlekanov; Respondents: The Commissioners for His Majesty’s Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
30 September 2022
Procedural Posture
Tax Appeal / Judgment After Remote Video Hearing
Outcome
Appeal against assessment struck out; appeal against penalty allowed.
Legal Topics
Customs Duty Assessment, Excise Penalty, Deeming Provisions, Reasonable Excuse, Special Circumstances
Tax Law Customs and Excise Customs Duty Assessment Excise Penalty Deeming Provisions Reasonable Excuse Special Circumstances

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Parties

Viktor Mlekanov

Appellant

The Commissioners for His Majesty’s Revenue and Customs

Respondents

Procedural Posture

Tax Appeal / Judgment After Remote Video Hearing

Legal Issues

  1. 1 Whether the Tribunal can entertain an appeal against assessment where no claim was made before the magistrates and goods are deemed forfeited
  2. 2 Whether the penalty imposed for non-payment of duty was appropriate and if a reasonable excuse or special circumstance existed

Ratio Decidendi

The Tribunal has no jurisdiction to entertain the appeal against the assessment of duty due to the effect of the deeming provision; the goods are deemed imported for commercial purposes and forfeited. However, for the penalty, the Tribunal must assess the taxpayer's actual intention and reasonable excuse. Mr Mlekanov's mistaken belief about the law and his honest conduct constituted a reasonable excuse, so the penalty is reduced to zero.

Court Disposition

Appeal against assessment struck out; appeal against penalty allowed.

Orders

  • Appeal against assessment to duty is struck out.
  • Penalty is reduced to zero.