Swallow v Revenue & Customs [2010] UKFTT 481 (TC) (07 October 2010)

Swallow v Revenue & Customs [2010] UKFTT 481 (TC) (07 October 2010)

A stay of six months was granted to allow HMRC officers conducting the appeal to be provided with any relevant evidence gathered in the criminal investigation, as this would ensure a fair hearing. However, HMRC failed to show that proceeding with the appeal would necessarily give rise to a real risk of prejudice to any defendant or the prosecution in criminal proceedings. The extension of time for HMRC’s Statement of Case was justified to avoid unnecessary expense and duplication if further evidence emerges. The appeal was re-allocated as a Complex case due to its nature.

Citation
[2010] UKFTT 481
Parties
Appellant: Mr Swallow; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
07 October 2010
Procedural Posture
Income Tax Appeal / Interlocutory Application for Stay and Extension of Time
Outcome
HMRC’s applications for a stay and extension of time allowed; appeal re-allocated as Complex case.
Legal Topics
Income Tax Appeals, Tax Avoidance Schemes, Stay of Proceedings, Case Management, Criminal Investigations and Civil Proceedings
Tax Law Civil Procedure Income Tax Appeals Tax Avoidance Schemes Stay of Proceedings Case Management Criminal Investigations and Civil Proceedings

Case Brief

Summary, issues, holding and outcome

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Parties

Mr Swallow

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Income Tax Appeal / Interlocutory Application for Stay and Extension of Time

Legal Issues

  1. 1 Whether a stay of appeal proceedings should be granted pending a criminal investigation into a tax avoidance scheme
  2. 2 Whether HMRC should be granted an extension of time to serve their Statement of Case
  3. 3 Whether the conduct of the appeal would prejudice ongoing or potential criminal proceedings

Ratio Decidendi

A stay of six months was granted to allow HMRC officers conducting the appeal to be provided with any relevant evidence gathered in the criminal investigation, as this would ensure a fair hearing. However, HMRC failed to show that proceeding with the appeal would necessarily give rise to a real risk of prejudice to any defendant or the prosecution in criminal proceedings. The extension of time for HMRC’s Statement of Case was justified to avoid unnecessary expense and duplication if further evidence emerges. The appeal was re-allocated as a Complex case due to its nature.

Court Disposition

HMRC’s applications for a stay and extension of time allowed; appeal re-allocated as Complex case.

Orders

  • Appeal proceedings stayed for six months from the date of the decision.
  • Matter to be listed for further case management directions hearing towards the end of the stay period.