Greencyc Ltd v HMRC - [2021] UKFTT 332 (TC)

Hammad Baig appeared for the Appellant in Greencyc Ltd v Revenue & Customs [2021] UKFTT 332 (TC) (10 September 2021). The Tribunal were determining applications relating to conjoined appeals concerning decisions reached by HMRC where the Appellant’s company was notified that it was not entitled to its claim of input VAT deduction. The decisions in question had been based on the conclusion that the input VAT was incurred on purchases of goods connected with the fraudulent evasion of VAT, and that the appellant knew or should have that connection.

The Respondent, HMRC, made an application for an order to comply with Fairford directions. The Appellant made a cross-application for further disclosure of documents. The Tribunal considered both the sought order by HMRC and the cross-application for further disclosure of documents by the Appellants.

The Tribunal granted HMRC’s application on the basis that compliance with the Fairford directions were a case management tool with the aim of finding the fairest estimate for the duration of the hearing. The idea that the directions forced the Appellant to make an advance disclosure of its substantive position or to disclose its cross-examination strategy was rejected.

The Tribunal rejected the Appellant’s cross-application for further disclosure of documents. The Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009 r.27(2) set out the default position regarding disclosure of documents. It provided that each party would disclose to the other party only those documents on which it proposed to rely. The Tribunal has the power to exercise its discretion to displace this rule, however it was found that there was a lack of proportionality in the disclosure requests to the uncertain prospect of the relevance of the documents requested. Consequently, the Tribunal decided against exercising its discretion.

HAMMAD BAIG © 2023

BARRISTER

33 BEDFORD ROW

Mr Baig practices, international trade law, tax law and commercial litigation with a specific interest in VAT and Customs and Excise Law.

Further articles on topics relating to Mr Baig's practice areas, can be read under his Insights, and on Mr Baig’s blog. Should you wish to instruct Mr  Baig, then please do not hesitate to contact his clerk Mark Byrne. 

NOTICE: This article is provided free of charge for information purposes only; it does not constitute legal advice and should not be relied on as such. No responsibility for the accuracy and/or correctness of the information and commentary set out in the article, or for any consequences of relying on it, is assumed or accepted by any member of Chambers or by Chambers as a whole.