Keary & Anor v The Director of Border Revenue & Revenue & Customs (EXCISE DUTY RESTORATION OF VEHICLE (see also EXCISE APPEAL) : Other) [2015] UKFTT 208 (TC) (11 May 2015)

Keary & Anor v The Director of Border Revenue & Revenue & Customs (EXCISE DUTY RESTORATION OF VEHICLE (see also EXCISE APPEAL) : Other) [2015] UKFTT 208 (TC) (11 May 2015)

The Border Force’s decision not to restore Mr Keary’s car was unreasonable because it was based on flawed assumptions and unsupported inferences regarding intent to sell tobacco for profit, smoking status, prior conduct, and concealment. The penalties imposed on Mr Keary and Ms Lakin were reasonable, as there were no special circumstances or reasonable excuse, and the penalties were at the statutory minimum for prompted disclosure.

Citation
[2015] UKFTT 208 (TC)
Parties
First Appellant: Michael Keary; Second Appellant: Sharon Lakin; First Respondent: The Director of Border Revenue; Second Respondent: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
11 May 2015
Procedural Posture
Excise Duty Restoration and Penalty Appeal / First Tier Tribunal (tax Chamber) Judgment
Outcome
Appeal allowed in part
Legal Topics
Excise Duty, Restoration of Seized Goods, Penalties for Unpaid Duty, Reasonableness of Administrative Decisions, Special Circumstances and Reasonable Excuse, Proportionality of Penalties
Tax Law Customs and Excise Law Excise Duty Restoration of Seized Goods Penalties for Unpaid Duty Reasonableness of Administrative Decisions Special Circumstances and Reasonable Excuse Proportionality of Penalties

Case Brief

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Parties

Michael Keary

First Appellant

Sharon Lakin

Second Appellant

The Director of Border Revenue

First Respondent

The Commissioners for Her Majesty’s Revenue and Customs

Second Respondent

Procedural Posture

Excise Duty Restoration and Penalty Appeal / First Tier Tribunal (tax Chamber) Judgment

Legal Issues

  1. 1 Whether the Border Force’s decision not to restore Mr Keary’s car was reasonable
  2. 2 Whether the penalties imposed on Mr Keary and Ms Lakin should be reduced due to special circumstances or reasonable excuse

Ratio Decidendi

The Border Force’s decision not to restore Mr Keary’s car was unreasonable because it was based on flawed assumptions and unsupported inferences regarding intent to sell tobacco for profit, smoking status, prior conduct, and concealment. The penalties imposed on Mr Keary and Ms Lakin were reasonable, as there were no special circumstances or reasonable excuse, and the penalties were at the statutory minimum for prompted disclosure.

Court Disposition

Appeal allowed in part

Orders

  • The Border Force’s review decision dated 1 March 2013 ceases to have effect from the date of this decision.
  • The Border Force must conduct a further review of the decision not to restore the vehicle, disregarding the assumption that the appellants intended to sell the HRT for profit and on the basis of the Tribunal’s factual findings.