Stephen Campbell v HM Treasury
[2024] UKFTT 888 (GRC)
The Commissioners for HMRC v Elite Management Consultancy Limited
26 June 2024
[2024] UKFTT 567 (TC)
First-tier Tribunal
HMRC failed to submit documents on time, even though they got extra time. The rules automatically threw out their case because of the late submission. HMRC can try to get their case back, but they have to act quickly.
Key Facts
- •HMRC failed to serve the authorities bundle by the deadline (5 pm on 17 June 2024), serving it at 7.05 pm instead.
- •The directions issued by Judge Sinfield stated that non-compliance would result in the proceedings being struck out.
- •HMRC's application was for a declaration that the 'enhanced umbrella scheme' was a notifiable tax avoidance scheme under DOTAS.
- •The respondents argued for an automatic strike-out due to the late service.
Legal Principles
Automatic strike-out of proceedings for non-compliance with a direction stating that non-compliance will lead to strike-out.
Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009, Rule 8(1)
Overriding objective of the Tribunal Rules is to deal with cases fairly and justly.
Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009, Rule 2(1)
Time for compliance with directions is before 5 pm on the specified day.
Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009, Rule 12(1)
Outcomes
HMRC's application was automatically struck out at 5.01 pm on 17 June 2024.
The late service of the authorities bundle constituted a breach of the unless order in Direction 17, triggering the automatic strike-out provision of Rule 8(1). The overriding objective does not apply to automatic strike-outs, only to applications for reinstatement.