Ibrahim Amir v The Commissioners for HMRC
[2024] UKFTT 589 (TC)
Janch Limited v The Commissioners for HMRC
22 November 2023
[2023] UKFTT 990 (TC)
First-tier Tribunal
A company was late appealing tax bills. The court said they needed a good reason to be late, but the company didn't have one. The company didn't provide the necessary information to support its case, so the court didn't let them appeal.
Key Facts
- •Janch Limited, a UK-incorporated company importing clothes from China, appealed late against HMRC decisions concerning underpaid import duty (£162,986.10) and VAT (£387,606.54), and a C18 Post Clearance Demand (£550,592.64).
- •The appeal was 30 days late (submitted 7 June 2022, due by 7 May 2022).
- •HMRC alleged undervaluation of goods and non-compliance with Onward Supply Relief (OSR) for VAT.
- •The Appellant's accountant, Pro Tax Plus Accountants, received HMRC correspondence but failed to act promptly.
- •Appellant's representatives provided inconsistent and belated explanations for the delay.
- •Appellant failed to provide sufficient grounds of appeal or supporting evidence despite repeated requests from HMRC.
Legal Principles
Three-stage test for late appeals: (1) length of delay, (2) reasons for delay, (3) all circumstances of the case, balancing prejudice to both parties.
Martland v HMRC [2018] UKUT 178 (TCC)
Presumption that statutory time limits should be respected; applicant must justify granting permission to appeal late.
Martland v HMRC [2018] UKUT 178 (TCC)
Significant breach of time limits warrants consideration of all three stages of the Martland test.
The Secretary of State for the Home Department v SS (Congo) and others [2015] ECWCA Civ 387; Romasave (Property Services) Limited v HMRC [2015] UKUT 0254 (TCC)
Failings of a litigant's advisors are generally treated as failings of the litigant.
HMRC v Katib [2019] UKUT 0189 (TCC)
Public interest in observing statutory time limits; allowing late appeals without good reason may encourage disregard of time limits.
Rose v HMRC [2009] UKFTT 189 (TCC)
Outcomes
Permission to appeal out of time refused.
Significant delay (30 days) with no good reason; Appellant's failure to engage with the case and provide necessary information; balancing exercise under Martland favoured HMRC due to inefficiency and lack of evidence.