Tribunal denies late appeal in excise duty penalties case

Tribunal denies late appeal in excise duty penalties case

The First-tier Tribunal (Tax Chamber) has refused permission for P.B.S Wholesale Limited, along with Elwira and Pawel Baczmaga, to make late appeals against penalties and liability notices issued by His Majesty's Revenue and Customs (HMRC) related to unpaid excise duty.

The appellants sought to challenge penalties and notices issued in 2022 and 2023, with the appeals being lodged significantly past the 30-day deadline. The tribunal, led by Tribunal Judge Greg Sinfield, found the delays to be serious and significant, with no good reason provided for the failure to appeal on time.

HMRC had issued several penalties and notices against P.B.S Wholesale Limited, including penalties under Schedule 41 of the Finance Act 2008 and Officer's Liability Notices against the individual appellants. The appellants argued that they had instructed their former solicitors to appeal all decisions, but it was not until November 2023 that they realised this had not been done.

The tribunal applied the three-stage test from Martland v HMRC, considering the length of the delay, the reasons for the delay, and all the circumstances of the case. The appellants' delays ranged from 255 to 601 days, which were deemed serious and significant.

The tribunal found that the appellants' reliance on their former solicitors' failure to appeal did not constitute a good reason for the delay. The tribunal noted that the appellants should have been more proactive in ensuring their appeals were lodged, especially given the significant sums involved.

In considering the third stage, the tribunal weighed the prejudice to both parties. While acknowledging the potential financial impact on the appellants, the tribunal emphasised the importance of adhering to statutory time limits and conducting litigation efficiently. The tribunal found no overwhelming strength in the appellants' case to justify granting permission for the late appeals.

The decision highlights the tribunal's strict approach to time limits and the responsibility of appellants to ensure their legal representatives are acting in accordance with their instructions. The refusal to admit the late appeals means the appellants remain liable for the penalties and notices issued by HMRC.

Learn More

For more information on tax appeals and related procedures, see BeCivil's Tax Appeals Guide.