Jacobson v Revenue and Customs (EXCISE DUTY CIVIL PENALTY (see also EXCISE HYDROCARBON OIL (DUTY)) : Assessment) [2016] UKFTT 570 (TC) (12 August 2016)

Jacobson v Revenue and Customs (EXCISE DUTY CIVIL PENALTY (see also EXCISE HYDROCARBON OIL (DUTY)) : Assessment) [2016] UKFTT 570 (TC) (12 August 2016)

The Tribunal held that the excise duty assessment was valid and payable because the goods were deemed to have been imported for commercial purposes due to the lack of condemnation proceedings. However, the penalty under Schedule 41 FA 2008 was not payable because the statutory conditions for the penalty—specifically, that the penalised conduct must occur after the excise duty point and when duty is outstanding—were not clearly met in the circumstances, and the principle against doubtful penalisation required a strict construction in favour of the appellant.

Citation
[2016] UKFTT 570
Parties
Appellant: Susan Jacobson; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
12 August 2016
Procedural Posture
Excise Duty Civil Penalty Appeal / First Tier Tribunal (tax) Final Decision
Outcome
Appeal allowed in part; excise duty assessment upheld, penalty assessment discharged.
Legal Topics
Excise Duty Assessment, Importation of Tobacco, Civil Penalties, Interpretation of Excise Regulations, Human Rights (article 6 Echr)
Tax Law Customs and Excise Law European Union Law Excise Duty Assessment Importation of Tobacco Civil Penalties Interpretation of Excise Regulations Human Rights (article 6 Echr)

Case Brief

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Parties

Susan Jacobson

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Excise Duty Civil Penalty Appeal / First Tier Tribunal (tax) Final Decision

Legal Issues

  1. 1 Whether excise duty is payable on tobacco brought from another EU member state for alleged commercial purposes
  2. 2 Whether a civil penalty under Schedule 41 FA 2008 is payable for handling goods subject to unpaid excise duty
  3. 3 Interpretation of 'excise duty point' and 'outstanding duty' under relevant regulations

Ratio Decidendi

The Tribunal held that the excise duty assessment was valid and payable because the goods were deemed to have been imported for commercial purposes due to the lack of condemnation proceedings. However, the penalty under Schedule 41 FA 2008 was not payable because the statutory conditions for the penalty—specifically, that the penalised conduct must occur after the excise duty point and when duty is outstanding—were not clearly met in the circumstances, and the principle against doubtful penalisation required a strict construction in favour of the appellant.

Court Disposition

Appeal allowed in part; excise duty assessment upheld, penalty assessment discharged.

Orders

  • The appellant must pay the excise duty assessment of £2,591.
  • The penalty assessment of £906 is cancelled; no penalty is payable.