Key Facts
- •Appeal by Daniel Witton against HMRC's decision requiring him to pay £424,930.50 in income tax and NICs.
- •HMRC's power to recover unpaid PAYE liabilities from employees when employers wilfully fail to deduct.
- •Various applications before the Tribunal: HMRC's application to admit additional evidence, Witton's application to bar HMRC, and a costs application.
- •Disputes over burden of proof regarding whether Direct Sharedeal Limited (DS Limited) wilfully failed to deduct income tax and NICs.
- •Delay in HMRC's application to admit additional evidence.
Legal Principles
Burden of proof on HMRC to establish wilful failure by employer to deduct PAYE and NICs.
HMRC v Stephen West [2018] UKUT 0100 (TC)
Test for barring a party from proceedings: realistic prospect of success, no mini-trial.
The First De Sales Ltd Partnership and others v HMRC [2018] UKUT 396 (TCC)
Test for admitting late evidence: seriousness of delay, reason for delay, and overall circumstances.
Martland v HMRC [2018] UKUT 178 (TCC)
Tribunal's power to admit evidence inadmissible in a civil trial.
FTT Rules, Rule 15(3)
Test for awarding costs: unreasonable conduct in the proceedings.
Market & Opinion Research International Ltd v HMRC [2015] UKUT 12 (TCC)
Outcomes
HMRC's application to amend the list of documents allowed.
No serious default, Tribunal's flexibility, relevance of documents.
HMRC's application to admit a second witness statement allowed.
Balancing exercise considering delay, reason for delay, and prejudice to both parties.
Witton's application to bar HMRC refused.
Admission of additional evidence remediates any deficiency; applying the First De Sales test.
Witton's costs application partially allowed.
HMRC's unreasonable conduct in arguing burden of proof and failing to address Martland principles.