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)

Section 16(3) of the Finance Act 1994 must be interpreted in line with Article 244 of the Community Customs Code. In light of the tribunal decision in Marco Trading Ltd, the disputed demands are objectively inconsistent with customs legislation. Even if not, requiring the appellant to pay or secure the duty would likely cause irreparable damage and serious economic difficulties, given the impact on trading activities, liquidity, and goodwill. The position of the controlling shareholders and the prior payment of dividends are relevant but do not override the objective assessment of hardship. The applications by HMRC to dismiss or strike out the appeals are dismissed, and the appeals are...

Citation
[2012] UKFTT 328 (TC)
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
Appeals entertained; HMRC's applications to dismiss or strike out the appeals are dismissed.
Legal Topics
Hardship Applications, Joint and Several Liability, Suspension of Customs Decisions, Provision of Security for Duty, Interpretation of Community Customs Code, Appeals Procedure, Corporate Veil and Shareholder Liability
Customs and Excise Tax Law European Union Law Hardship Applications Joint and Several Liability Suspension of Customs Decisions Provision of Security for Duty Interpretation of Community Customs Code +2 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 demands for customs duty should be suspended pending appeal due to hardship or inconsistency with customs legislation
  2. 2 Whether the appellant is likely to suffer irreparable damage or serious economic difficulties if required to pay or secure the duty
  3. 3 Relevance of dividends paid to controlling shareholders in assessing hardship

Ratio Decidendi

Section 16(3) of the Finance Act 1994 must be interpreted in line with Article 244 of the Community Customs Code. In light of the tribunal decision in Marco Trading Ltd, the disputed demands are objectively inconsistent with customs legislation. Even if not, requiring the appellant to pay or secure the duty would likely cause irreparable damage and serious economic difficulties, given the impact on trading activities, liquidity, and goodwill. The position of the controlling shareholders and the prior payment of dividends are relevant but do not override the objective assessment of hardship. The applications by HMRC to dismiss or strike out the appeals are dismissed, and the appeals are...

Court Disposition

Appeals entertained; HMRC's applications to dismiss or strike out the appeals are dismissed.

Orders

  • The appeals by Gateway Shipping Ltd are entertained.
  • HMRC's applications to dismiss or strike out the appeals are dismissed.