Learna Limited v The Commissioners for HMRC
[2023] UKFTT 972 (TC)
Charles Kendall Freight Limited v The Commissioners for HMRC
30 May 2024
[2024] UKFTT 492 (TC)
First-tier Tribunal
A company appealed tax bills, but the tax office cancelled the bills before the appeal was fully processed. The court decided it couldn't hear the appeal anymore because the problem was gone. The company also wanted the tax office to pay their legal fees, but they couldn't because they didn't properly request this and the court didn't find the tax office did anything wrong.
Key Facts
- •Charles Kendall Freight Ltd. appealed two Post Clearance Demand Notes (C18s) totaling £54,044.82 for allegedly undervalued imported goods.
- •HMRC withdrew the C18s due to a calculation error before being notified of the appeal.
- •The Appellant claimed hardship and sought costs.
- •The appeal was uncategorized due to the pending hardship claim.
- •HMRC requested the appeal be struck out.
- •The Appellant disagreed, arguing the appeal should be allowed with costs.
Legal Principles
A tribunal must strike out proceedings if it lacks jurisdiction.
Tribunal Rule 8(2)(a)
An appeal must be against something; without a decision, an appeal has no meaning or substance.
LS v HMRC and RS v HMRC [2017] UKUT 257 (AAC), Furtado v City of London Brewery Company [1914] 1 KB 709
Withdrawal of an underlying decision after an appeal is filed does not automatically oust the tribunal's jurisdiction.
Rasam Gayatri Silks Limited v HMRC [2010] UKFTT 50 (TC), Learna Limited v HMRC [2023] UKFTT 00972 (TC)
The tribunal may award costs if a party acted unreasonably or if the proceedings were allocated as a Complex case (unless the taxpayer requested exclusion).
Tribunal Rule 10(1)(b), (c)
A costs application must include a schedule of costs.
Tribunal Rule 10(3)(b)
Hardship must be resolved before the Tribunal can entertain an appeal.
Section 16(3) Finance Act 1994, Tribunal Rule 22(4)
Outcomes
Appeal struck out.
The Tribunal lacked jurisdiction once the underlying decision was withdrawn. The withdrawal occurred before the Tribunal was notified of it. Rule 8(2)(a) mandates strike-out when jurisdiction is lacking.
Appellant's application for costs refused.
The Appellant failed to demonstrate HMRC acted unreasonably and did not provide a schedule of costs as required by Rule 10(3)(b). The appeal was not categorized as complex, and the Appellant did not meet the burden of proof for costs.