FTU Pod Trans v Revenue and Customs (EXCISE DUTY AND WRONGDOING PENALTY - cigarettes smuggled into UK - whether the haulier holding the cigarettes and therefore liable for the excise duty) [2025] UKFTT 753 (TC) (17 June 2025)

FTU Pod Trans v Revenue and Customs (EXCISE DUTY AND WRONGDOING PENALTY - cigarettes smuggled into UK - whether the haulier holding the cigarettes and therefore liable for the excise duty) [2025] UKFTT 753 (TC) (17 June 2025)

The appellant, through its employee, had de facto control over the cigarettes at the excise duty point and was thus 'holding' the goods under r13(2)(b) of the 2010 Regulations, making it liable for the excise duty. Knowledge or intent is not required for such liability. For the wrongdoing penalty, the appellant's behaviour was not deliberate and concealed but prompted and not deliberate, warranting a reduction in penalty percentage for quality of disclosure. No reasonable excuse or special circumstances were established.

Citation
[2025] UKFTT 753 (TC)
Parties
Appellant: F. T. U. Pod Trans; Respondents: The Commissioners for His Majesty's Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
17 June 2025
Procedural Posture
Tax Appeal (excise Duty and Wrongdoing Penalty) / First Tier Tribunal (tax Chamber) Substantive Judgment After Full Hearing
Outcome
Appeal dismissed in respect of the excise duty assessment; penalty assessment affirmed but varied.
Legal Topics
Excise Duty Liability, Wrongdoing Penalty, Holding of Excise Goods, Reasonable Excuse, Quality of Disclosure, Burden of Proof, Interpretation of 'holding' Under EU Law
Tax Law Customs and Excise Law Administrative Law Excise Duty Liability Wrongdoing Penalty Holding of Excise Goods Reasonable Excuse Quality of Disclosure +2 more

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Parties

F. T. U. Pod Trans

Appellant

The Commissioners for His Majesty's Revenue and Customs

Respondents

Procedural Posture

Tax Appeal (excise Duty and Wrongdoing Penalty) / First Tier Tribunal (tax Chamber) Substantive Judgment After Full Hearing

Legal Issues

  1. 1 Whether the appellant was 'holding' excise goods intended for delivery where excise duty was unpaid under r13(2)(b) Excise Goods (Holding, Movement and Duty Point) Regulations 2010
  2. 2 Whether the appellant was liable for a wrongdoing penalty under Schedule 41 Finance Act 2008 and if the behaviour was 'deliberate and concealed'
  3. 3 Whether the appellant had a reasonable excuse for the penalty

Ratio Decidendi

The appellant, through its employee, had de facto control over the cigarettes at the excise duty point and was thus 'holding' the goods under r13(2)(b) of the 2010 Regulations, making it liable for the excise duty. Knowledge or intent is not required for such liability. For the wrongdoing penalty, the appellant's behaviour was not deliberate and concealed but prompted and not deliberate, warranting a reduction in penalty percentage for quality of disclosure. No reasonable excuse or special circumstances were established.

Court Disposition

Appeal dismissed in respect of the excise duty assessment; penalty assessment affirmed but varied.

Orders

  • Excise duty assessment of £472,378 is upheld against the appellant.
  • Wrongdoing penalty is affirmed but reduced to reflect that the appellant's behaviour was prompted but not deliberate, and to allow a greater reduction for quality of disclosure.