Atlantic Electronics Ltd v Revenue & Customs [2011] UKFTT 276 (TC) (11 February 2011)

Atlantic Electronics Ltd v Revenue & Customs [2011] UKFTT 276 (TC) (11 February 2011)

The Tribunal held that, given the significant lapse of time since the 2009 Rules came into effect, the absence of a timely application by HMRC, and the Appellant's legitimate expectation that the 2009 Rules would apply, it would not be fair or just to apply the 1986 costs rules. The only costs that can be ordered are for wasted costs or unreasonable conduct under Rule 10 of the 2009 Rules.

Citation
[2011] UKFTT 276 (TC)
Parties
Appellant: Atlantic Electronics Ltd; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
11 February 2011
Procedural Posture
VAT Input Tax Appeal (transitional, Consolidated) / Application for Direction on Applicable Costs Regime
Outcome
Application dismissed
Legal Topics
VAT Input Tax Disallowance, Costs Regime Transition, Transitional Provisions, Fraud Allegation in VAT Chains
Tax Law Tribunal Procedure VAT Input Tax Disallowance Costs Regime Transition Transitional Provisions Fraud Allegation in VAT Chains

Case Brief

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Parties

Atlantic Electronics Ltd

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

VAT Input Tax Appeal (transitional, Consolidated) / Application for Direction on Applicable Costs Regime

Legal Issues

  1. 1 Whether the Tribunal should apply the 1986 costs rules or the 2009 costs rules to this transitional appeal
  2. 2 Whether delay in seeking a direction on costs regime is relevant
  3. 3 Whether the nature of the case (allegation of fraud) or means of parties is relevant to costs regime

Ratio Decidendi

The Tribunal held that, given the significant lapse of time since the 2009 Rules came into effect, the absence of a timely application by HMRC, and the Appellant's legitimate expectation that the 2009 Rules would apply, it would not be fair or just to apply the 1986 costs rules. The only costs that can be ordered are for wasted costs or unreasonable conduct under Rule 10 of the 2009 Rules.

Court Disposition

Application dismissed

Orders

  • Only costs for wasted costs or unreasonable conduct may be ordered under Rule 10 of the 2009 Rules.