Vijayasarathi Baskararajulu v The Commissioners for HMRC
[2023] UKFTT 430 (TC)
Lalji Vekaria v The Commissioners for HMRC
13 March 2023
[2023] UKFTT 288 (TC)
First-tier Tribunal
Mr. Vekaria's appeal against his tax bill was too late, and the tax office didn't prove he owed extra penalties. The judge said he should have appealed sooner and cooperated more with the tax investigation.
Key Facts
- •Appeal against tax assessments for 2015/16 and 2016/17 totaling £133,270.55 and a penalty of £85,787.55.
- •Appellant's initial application for a late appeal was lodged on 29 March 2021.
- •Assessments were issued on 29 April 2019.
- •Appellant's agent allegedly sent letters on 15 April 2019 and 10 November 2019, but HMRC did not receive them.
- •A letter dated 28 March 2019 was not an assessment, as it stated intentions but not the final amount.
- •The earliest appeal was lodged on 1 June 2020, significantly out of time.
- •Appellant's bankruptcy petition further complicated the matter.
- •HMRC claimed a penalty notice was issued on 2 May 2019, but could not provide sufficient proof.
Legal Principles
Test for late appeals, considering delay, reason for delay, and all circumstances.
Martland v HM Revenue & Customs [2018] UKUT 178 (TCC)
Failings of a litigant's advisors are generally considered failings of the litigant.
HMRC v Katib [2019] 0189 UK UT (TCC)
An appeal must be lodged after the assessment is issued and sent to the relevant officer.
Sections 31 and 31A TMA 1970
Burden of proof for both issue and service of the penalty notice falls upon HMRC.
Anstock v HMRC [2017] UKFTT 307 (TC); Edwards v HMRC (2019) UKUT 131 (TCC)
Advocate's assertions are not evidence; proper inferences must be drawn based on probability.
Edwards v HMRC (2019) UKUT 131 (TCC)
An assessment must at a minimum state the amount of tax payable and specify the year of assessment.
Hallamshire Industrial Finance Trust Limited v IRC [1979] 1 WLR 620; Baylis v Gregory [1989] AC 398
Outcomes
Appeal dismissed regarding tax assessments.
Significant delay in appealing (over a year), no good explanation for the delay, and appellant's lack of cooperation with HMRC.
Claims related to the penalty struck out.
HMRC failed to prove a penalty notice was issued on 2 May 2019, insufficient evidence provided.