Candido Pereira Rodrigues v The Commissioners for HMRC
[2024] UKFTT 517 (TC)
Tajinder Singh Pawar v The Commissioners for HMRC
25 January 2023
[2023] UKFTT 81 (TC)
First-tier Tribunal
Someone was very late appealing a big tax bill. Even though there were many earlier discussions, the judge said they should have appealed much sooner after getting a final decision letter. Because they were so late and didn't have a good reason, the appeal was thrown out.
Key Facts
- •HMRC issued a Personal Liability Notice (PLN) to the Appellant on October 5, 2017, for £874,238, representing 100% of a penalty imposed on First Stop Wholesale Limited (FSW) for VAT errors.
- •The appeal against the PLN was notified 38 months late, on February 22, 2022.
- •The PLN followed a lengthy period of investigation and discussions between HMRC, the Appellant, and his various accountants regarding the VAT assessments and penalties.
- •HMRC had previously issued a PLN in 2015, which was later replaced by the 2017 PLN.
- •A statutory review of the 2017 PLN was concluded on November 19, 2018, upholding the decision.
- •The Appellant's appeal was significantly delayed, with minimal engagement after the review conclusion letter.
Legal Principles
Three-stage process for late appeal applications as set out in *Martland v HMRC*.
[2018] UKUT 178 (TCC)
Failures by a litigant's advisor are generally treated as failures by the litigant when considering late appeal applications.
*HMRC v Katib* [2019] UKUY 0189 (TCC)
Reliance on external advice is not a knockout argument for granting relief from sanctions.
Case law discussed in relation to *Welsh v Parnianzadeh* [2004] EWCA Civ 1832
Outcomes
Application for permission to make a late appeal refused.
The delay was significant (38 months), and the reasons provided lacked merit. The Appellant failed to act promptly after receiving the review conclusion letter, despite clear instructions on how to appeal. The prejudice to HMRC from granting the appeal outweighed the prejudice to the Appellant.
Substantive appeal dismissed.
As permission for a late appeal was refused.