Witton v Revenue and Customs (PROCEDURE - application to bar HMRC) [2024] UKFTT 489 (TC) (22 May 2024)

Witton v Revenue and Customs (PROCEDURE - application to bar HMRC) [2024] UKFTT 489 (TC) (22 May 2024)

HMRC's applications to admit additional evidence and a late witness statement were allowed despite serious and significant delay, as the prejudice to HMRC and the public interest outweighed the limited prejudice to the Appellant. The barring application was refused because, with the new evidence admitted, HMRC had a realistic prospect of defending the appeal. Costs were awarded to the Appellant for the barring application and objection to the witness statement due to HMRC's unreasonable conduct in arguing the burden of proof contrary to their own pleadings and failing to address the Martland principles.

Citation
[2024] UKFTT 489 (TC)
Parties
Appellant: Daniel Witton; Respondents: The Commissioners for His Majesty's Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
22 May 2024
Procedural Posture
Tax Appeal / Interlocutory Applications Prior to Substantive Hearing
Outcome
HMRC's application to admit additional evidence and witness statement allowed; Appellant's barring application refused; Appellant's application for costs allowed in part.
Legal Topics
PAYE Liability, National Insurance Contributions, Burden of Proof, Admission of Evidence, Costs, Wilful Failure to Deduct Tax, Case Management, Barring Applications
Tax Law Civil Procedure PAYE Liability National Insurance Contributions Burden of Proof Admission of Evidence Costs Wilful Failure to Deduct Tax +2 more

Case Brief

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Parties

Daniel Witton

Appellant

The Commissioners for His Majesty's Revenue and Customs

Respondents

Procedural Posture

Tax Appeal / Interlocutory Applications Prior to Substantive Hearing

Legal Issues

  1. 1 Whether HMRC should be barred from proceedings for lack of evidence on wilful failure to deduct PAYE/NICs
  2. 2 Whether HMRC should be permitted to admit additional evidence and a late witness statement
  3. 3 Whether Appellant is entitled to costs for unreasonable conduct by HMRC

Ratio Decidendi

HMRC's applications to admit additional evidence and a late witness statement were allowed despite serious and significant delay, as the prejudice to HMRC and the public interest outweighed the limited prejudice to the Appellant. The barring application was refused because, with the new evidence admitted, HMRC had a realistic prospect of defending the appeal. Costs were awarded to the Appellant for the barring application and objection to the witness statement due to HMRC's unreasonable conduct in arguing the burden of proof contrary to their own pleadings and failing to address the Martland principles.

Court Disposition

HMRC's application to admit additional evidence and witness statement allowed; Appellant's barring application refused; Appellant's application for costs allowed in part.

Orders

  • HMRC permitted to amend list of documents and admit second witness statement of Ms McGuigan and exhibits.
  • Appellant's application to bar HMRC from proceedings refused.