Gateway Shipping Ltd v Revenue & Customs [2012] UKFTT 328 (TC) (04 May 2012)

Gateway Shipping Ltd v Revenue & Customs [2012] UKFTT 328 (TC) (04 May 2012)

The tribunal held that, in light of the decision in Marco Trading Ltd, the disputed demands were objectively inconsistent with customs legislation. Even if not, irreparable damage was to be feared for the appellant if the demands were implemented in advance of appeal, as provision of security from the appellant’s own resources would likely cause serious economic difficulties, including loss of profit and goodwill. The position of the directors and the outcome of the Marco Trading Ltd appeal were relevant circumstances, but it was unreasonable to expect the directors to finance security in these circumstances. Therefore, the applications by HMRC to dismiss or strike out the appeals were...

Citation
[2012] UKFTT 328
Parties
Appellant: Gateway Shipping Ltd; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
04 May 2012
Procedural Posture
Customs Duty Hardship Application (first Tier Tribunal, Tax Chamber) / Decision on Hardship Application and Whether Appeals Can Be Entertained
Outcome
Applications by HMRC to dismiss or strike out the appeals are dismissed; the appeals are entertained.
Legal Topics
Customs Duty Hardship, Joint and Several Liability, Suspension of Customs Decisions, Interpretation of Community Customs Code, Appeals Procedure, Provision of Security for Customs Debts
Tax Law Customs Law European Union Law Customs Duty Hardship Joint and Several Liability Suspension of Customs Decisions Interpretation of Community Customs Code Appeals Procedure +1 more

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Parties

Gateway Shipping Ltd

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Customs Duty Hardship Application (first Tier Tribunal, Tax Chamber) / Decision on Hardship Application and Whether Appeals Can Be Entertained

Legal Issues

  1. 1 Whether the implementation of post-clearance customs duty demands should be suspended pending appeal due to hardship or inconsistency with customs legislation
  2. 2 Whether payment or provision of security by the appellant would cause irreparable damage or serious economic difficulties
  3. 3 Relevance of dividends paid to controlling shareholders in assessing hardship

Ratio Decidendi

The tribunal held that, in light of the decision in Marco Trading Ltd, the disputed demands were objectively inconsistent with customs legislation. Even if not, irreparable damage was to be feared for the appellant if the demands were implemented in advance of appeal, as provision of security from the appellant’s own resources would likely cause serious economic difficulties, including loss of profit and goodwill. The position of the directors and the outcome of the Marco Trading Ltd appeal were relevant circumstances, but it was unreasonable to expect the directors to finance security in these circumstances. Therefore, the applications by HMRC to dismiss or strike out the appeals were...

Court Disposition

Applications by HMRC to dismiss or strike out the appeals are dismissed; the appeals are entertained.

Orders

  • The appeals by Gateway Shipping Ltd are entertained and will proceed; HMRC's applications to dismiss or strike out are refused.