Hayman Group Ltd v HMRC – [2021] UKFTT 195 (TC)

Hammad Baig appeared before the First-Tier Tribunal in Hayman Group Ltd v HMRC [2021] UKFTT 195 (TC) (27 May 2021). The Appellant was an exporter of alcoholic beverages whose goods never arrived after being moved from the UK to an authorised warehouse in Italy. The appeal concerned whether the appellant was liable to pay excise duty.

The Italian tax authorities had detected that there must have been an irregularity of some kind in the movement of goods for the purposes of Directive 2008/118 (the general arrangements for excise duty) art.10. However, the irregularity itself was deemed to have occurred in the UK, and therefore HMRC had the right to assess the duty payable.

The tribunal found that the goods in question were counterfeit and therefore cannot be the basis of an assessment by HMRC.

However, considering the construction of Directive 2008/118 Art.10, which, the FtT promulgated, requires the precise nature of the irregularity to be known and not just that an irregularity must have occurred, the Tribunal dismissed the appeal.

HAMMAD BAIG © 2023

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

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