Inland Revenue, Re An Application For Judicial Review [2005] ScotCS CSOH_135 (18 October 2005)

Inland Revenue, Re An Application For Judicial Review [2005] ScotCS CSOH_135 (18 October 2005)

The General Commissioners' decision to allow late appeals was unreasonable and ultra vires because it failed to consider the legislative policy underlying section 33 of the Taxes Management Act, which precludes reopening assessments made in accordance with generally prevailing practice. The Commissioners only addressed the two express conditions in section 49(1) and ignored other relevant considerations, including the significant passage of time and the impact on finality.

Citation
[2005] ScotCS CSOH_135
Parties
Petitioner: The Commissioners of Inland Revenue; Respondent: Mr. Hugh Love
Jurisdiction
Scotland
Judgment Date
18 October 2005
Procedural Posture
Judicial Review / Final Judgment
Outcome
decision of General Commissioners reduced as ultra vires
Legal Topics
Foreign Earnings Deduction, Late Appeals, Finality of Tax Assessments, Practice Generally Prevailing, Discretion Under Taxes Management Act
Tax Law Administrative Law Foreign Earnings Deduction Late Appeals Finality of Tax Assessments Practice Generally Prevailing Discretion Under Taxes Management Act

Case Brief

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Parties

The Commissioners of Inland Revenue

Petitioner

Mr. Hugh Love

Respondent

Procedural Posture

Judicial Review / Final Judgment

Legal Issues

  1. 1 Whether late appeals against income tax assessments for 1991/92, 1992/93, and 1993/94 should be permitted under section 49(1) of the Taxes Management Act 1970
  2. 2 Whether the General Commissioners' decision to allow late appeals was ultra vires and unreasonable
  3. 3 Interaction between sections 33 and 49 of the Taxes Management Act regarding reopening assessments

Ratio Decidendi

The General Commissioners' decision to allow late appeals was unreasonable and ultra vires because it failed to consider the legislative policy underlying section 33 of the Taxes Management Act, which precludes reopening assessments made in accordance with generally prevailing practice. The Commissioners only addressed the two express conditions in section 49(1) and ignored other relevant considerations, including the significant passage of time and the impact on finality.

Court Disposition

decision of General Commissioners reduced as ultra vires

Orders

  • Declarator that the General Commissioners' decision of 19 August 2004 was ultra vires
  • Reduction of the General Commissioners' decision