Ali Salamat v The Commissioners for HMRC
[2024] UKFTT 150 (TC)
Asif Patel v The Commissioners for HMRC
4 January 2024
[2024] UKFTT 80 (TC)
First-tier Tribunal
A man was fined for bringing too much tobacco and cigarettes into the UK. He said he didn't know the rules and was too anxious to ask, but the judge didn't believe him because he hadn't answered HMRC's questions properly and it's unlikely he didn't see all the airport signs. The fine stood.
Key Facts
- •Asif Patel was penalized £1,139 for dishonest evasion of customs duties on tobacco and cigarettes.
- •Patel arrived at Manchester Airport from Turkey with 6kg of tobacco and 1200 cigarettes, exceeding the personal allowance.
- •He proceeded through the green channel, attempting to avoid paying duties.
- •Patel claimed unawareness of customs allowances and anxiety as reasons for not seeking clarification.
- •HMRC presented evidence of prominent airport signage and readily available online information about allowances.
Legal Principles
Penalty for evasion of excise duty (dishonesty)
Sections 8(1) Finance Act 1994 and 25(1) FA 2003
Ivey v Genting Casinos two-stage test for dishonesty (subjective belief and objective standards)
[2017] UKSC 67
Dishonesty involves intentional deception or knowingly taking others' property, even if one deliberately avoids learning relevant information.
Royal Brunei Airlines Sdn Bhd v Tan [1995] 3 All ER 97
Outcomes
Appeal dismissed.
The Tribunal found Patel's evidence inconsistent and unreliable. His failure to fully respond to HMRC's requests for information, inconsistencies in his statements, and implausible claims of unawareness of signage and allowances led to the conclusion that his actions were dishonest.