Asif Patel v The Commissioners for HMRC
[2024] UKFTT 80 (TC)
Ali Salamat v The Commissioners for HMRC
20 February 2024
[2024] UKFTT 150 (TC)
First-tier Tribunal
A man was caught smuggling a lot of cigarettes. He said he didn't know the rules, but the judge didn't believe him because of lies he told. The judge said smuggling is dishonest and he had to pay a fine. He tried to say he was poor, but that didn't matter.
Key Facts
- •Mr. Salamat was stopped at Manchester Airport with 28 cartons (5600 cigarettes) from Pakistan.
- •He claimed ignorance of customs allowances, stating he was told he could bring 7 cartons per bag in Pakistan.
- •He gave inconsistent accounts of the cigarettes' intended recipients (family/friends vs. personal use).
- •He failed to declare the cigarettes, using the green channel.
- •Customs signs regarding allowances were present at the airport.
- •Total duty evaded was £2294; penalties issued were £917 (initially £205 and £712).
- •The appeal was decided on the papers without a hearing due to appellant's consent and lack of further evidence.
Legal Principles
Dishonesty for customs evasion penalties.
Sections 8(1), (4), and (5) of the Finance Act 1994; Sections 25(1) and 29 of the Finance Act 2003; The Travellers' Allowance Order 1994.
Test for dishonesty (objective standard of ordinary decent people).
Ivey v Genting Casinos (UK) Ltd t/a Crockfords v Genting [2017] UKSC 67.
Outcomes
Appeal dismissed.
The Tribunal found Mr. Salamat's conduct dishonest based on inconsistent statements, disregard of clear signage, and knowingly exceeding allowances.