Bunting v Revenue and Customs (EXCISE DUTY - Appeal against notice of joint and several liability to pay assessment to excise duty) [2024] UKFTT 431 (TC) (23 May 2024)

Parties

Procedural Posture

Excise Duty Appeal and Penalty Appeal / First Tier Tribunal (tax Chamber) Judgment

Legal Issues

1. 1 Whether the appellant was 'involved in the holding' of excise goods under regulation 10(2) of the Excise Goods (Holding, Movement and Duty Point) Regulations 2010
2. 2 Whether the appellant was 'concerned in ... keeping or otherwise dealing with the goods' under paragraph 4(1) of Schedule 41 to the Finance Act 2008
3. 3 Whether the appellant is jointly and severally liable for excise duty and associated penalty

Ratio Decidendi

A property owner who rents out storage space to a third party is not 'involved in the holding' of excise goods under regulation 10(2) HMDPR, nor 'concerned in ... keeping or otherwise dealing with the goods' under paragraph 4(1) Schedule 41 FA 2008, unless they know or should know that excise goods are being stored. The appellant neither knew nor should have known about the duty-unpaid cigarettes, and there were no other relevant circumstances to impose liability.

Court Disposition

Appeals allowed. Assessment and penalty quashed/cancelled.

Orders

• The notification dated 10 September 2021, upheld in the review conclusion letter dated 21 January 2022, that the Appellant is jointly and severally liable to pay the assessment to excise duty in the amount of £808,842, is quashed.
• The excise wrongdoing penalty dated 18 May 2022 in the sum of £161,768, upheld in the review conclusion letter dated 1 September 2022, is cancelled.