Janch Limited v The Commissioners for HMRC
[2023] UKFTT 990 (TC)
Ibrahim Amir v The Commissioners for HMRC
4 July 2024
[2024] UKFTT 589 (TC)
First-tier Tribunal
Someone didn't pay their import taxes on time and then appealed late. The judge said the delay was too long and the reasons weren't good enough, so the appeal was rejected. It's important to follow the rules and deadlines when dealing with taxes.
Key Facts
- •Ibrahim Amir (formerly Abuu Mixudiin) appealed late against HMRC's decision to charge £28,924.27 in customs duty and import VAT on three importations of goods in 2019.
- •HMRC revalued the goods based on reasonable doubt about the declared prices, using a 'Revaluation Tool' comparing the Appellant's declared values to those of other importers.
- •The appeal was 122 days late.
- •The Appellant claimed his delay was due to a lack of understanding, his wife's serious illness, and his caring responsibilities for six children.
- •HMRC argued the Appellant failed to respond to multiple communications and that the offer to appeal was clearly stated in the decision letter.
Legal Principles
Applications for extensions of time limits are assessed by considering: (1) the purpose of the time limit; (2) the length of the delay; (3) the explanation for the delay; (4) the consequences for both parties of granting or refusing the extension.
Data Select Ltd v R & C Comrs [2012] STC 2195
A three-stage approach to relief from sanctions: (1) assess the seriousness of the breach; (2) consider why the default occurred; (3) evaluate all circumstances, including prejudice to both parties.
Denton & Ors v T H White Limited & Ors [2014] EWCA Civ 906
In late appeals, the tribunal considers: (1) the length of the delay; (2) reasons for the delay; (3) a balancing exercise assessing the merits of the reasons and prejudice to both parties.
Martland v R & C Comrs [2018] UKUT 178 (TCC)
A delay of more than three months in appealing a decision with a 30-day time limit is serious and significant.
Romasave (Property Services) Ltd v R & C Comrs [2015] UKUT 254 (TCC)
Failures by a taxpayer's advisor are generally treated as failures by the taxpayer.
HMRC v Katib [2019] UKUT 189 (TCC)
Being a litigant in person is not a good reason for failing to comply with rules.
Hysaj, R (in the application of) v Secretary of State for the Home Department [2014] EWCA Civ 1633
Comparatively low values constitute reasonable grounds for doubting declared prices and customs value.
ECJ Case C-291/15
Outcomes
Application to make a late appeal refused.
The delay was serious and significant (122 days). The Appellant's reasons for the delay (lack of understanding, wife's illness, caring responsibilities) were not considered good reasons. The balance of prejudice favored refusing the extension, considering the importance of finality in litigation and the weak merits of the Appellant's case.