Tucker v Revenue & Customs (COSTS - Application for costs) [2019] UKFTT 569 (TC) (11 September 2019)

Tucker v Revenue & Customs (COSTS - Application for costs) [2019] UKFTT 569 (TC) (11 September 2019)

The Tribunal held that although the application for costs was made out of time, the appellant had a good reason for the delay, namely non-receipt of the decision notice and lack of awareness of the need to apply until prompted by the Ombudsman. The Tribunal exercised its discretion to allow the late application. On the merits, the Tribunal found that HMRC acted unreasonably by failing to withdraw their defence earlier, specifically from 27 July 2017, when they should have recognised the strength of the appellant's evidence. Costs were awarded to the appellant for the period of unreasonable conduct, subject to detailed assessment.

Citation
[2019] UKFTT 569
Parties
Appellant: Basil Tucker; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
11 September 2019
Procedural Posture
Costs Application Following Tax Appeal / Post Withdrawal, Application for Costs, Determination of Timeliness and Merits
Outcome
Application granted in part
Legal Topics
Costs in Tribunal Proceedings, Unreasonable Conduct, Late Applications, Relief From Sanctions
Tax Law Tribunal Procedure Costs in Tribunal Proceedings Unreasonable Conduct Late Applications Relief From Sanctions

Case Brief

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Parties

Basil Tucker

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Costs Application Following Tax Appeal / Post Withdrawal, Application for Costs, Determination of Timeliness and Merits

Legal Issues

  1. 1 Whether the appellant's application for costs was made out of time and if permission should be granted to proceed out of time
  2. 2 Whether HMRC acted unreasonably in defending the appeal and in the timing of their withdrawal
  3. 3 From what date, if any, HMRC's conduct became unreasonable for the purposes of a costs award

Ratio Decidendi

The Tribunal held that although the application for costs was made out of time, the appellant had a good reason for the delay, namely non-receipt of the decision notice and lack of awareness of the need to apply until prompted by the Ombudsman. The Tribunal exercised its discretion to allow the late application. On the merits, the Tribunal found that HMRC acted unreasonably by failing to withdraw their defence earlier, specifically from 27 July 2017, when they should have recognised the strength of the appellant's evidence. Costs were awarded to the appellant for the period of unreasonable conduct, subject to detailed assessment.

Court Disposition

Application granted in part

Orders

  • Permission granted for late application for costs
  • HMRC found to have acted unreasonably from 27 July 2017