B&M RETAIL LIMITED v Revenue & Customs (EXCISE DUTY - wrongdoing penalties - whether invalid due to amended excise duty assessment - no) [2023] UKFTT 34 (TC) (10 January 2023)

B&M RETAIL LIMITED v Revenue & Customs (EXCISE DUTY - wrongdoing penalties - whether invalid due to amended excise duty assessment - no) [2023] UKFTT 34 (TC) (10 January 2023)

The penalty assessment was not invalidated by the amendment of the excise duty assessment; B&M did not have a reasonable excuse as their due diligence focused on suppliers rather than on each supply of goods and did not verify duty payment; no special circumstances justified a reduction; the disclosure was prompted; and the penalty was not disproportionate or unfair. The penalty amount was amended to reflect the correct potential lost revenue.

Citation
[2023] UKFTT 34 (TC)
Parties
Appellant: B&M Retail Limited; Respondents: The Commissioners for His Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
10 January 2023
Procedural Posture
Tax Tribunal Appeal / First Tier Tribunal (tax) Judgment
Outcome
Appeal dismissed subject to amendment of penalty amount
Legal Topics
Excise Duty Wrongdoing Penalties, Reasonable Excuse, Special Circumstances, Penalty Calculation, Proportionality of Penalties
Tax Law Excise Duty Excise Duty Wrongdoing Penalties Reasonable Excuse Special Circumstances Penalty Calculation Proportionality of Penalties

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Parties

B&M Retail Limited

Appellant

The Commissioners for His Majesty’s Revenue and Customs

Respondents

Procedural Posture

Tax Tribunal Appeal / First Tier Tribunal (tax) Judgment

Legal Issues

  1. 1 Whether the penalty assessment was invalid due to being based on an amended excise duty assessment
  2. 2 Whether B&M had a reasonable excuse for the wrongdoing
  3. 3 Whether special circumstances justified a reduction in penalty

Ratio Decidendi

The penalty assessment was not invalidated by the amendment of the excise duty assessment; B&M did not have a reasonable excuse as their due diligence focused on suppliers rather than on each supply of goods and did not verify duty payment; no special circumstances justified a reduction; the disclosure was prompted; and the penalty was not disproportionate or unfair. The penalty amount was amended to reflect the correct potential lost revenue.

Court Disposition

Appeal dismissed subject to amendment of penalty amount

Orders

  • Penalty assessment upheld in the amended amount of £1,172,340.94
  • Appeal otherwise dismissed