Hammad Baig appears in the Tax Tribunal in a VAT Penalty Case

Author: Reporter
In: News Published: Thursday 23 May 2019


Hammad Baig appeared for the Appellant Mr Byers in Byers v Revenue & Customs [2019] UKFTT 310 (TC) (13 May 2019) [2019] 5 WLUK 318. The appeal was against a VAT Civil Evasion Penalty Notice, issued by the HMRC pursuant to section 61 of the Value Added Tax Act 1994 (‘VATA’). The penalty was imposed on the Appellant on the basis that an under-declaration of VAT by a company called BSL Auto Services (South) Limited ('BSL'), a company of which the Appellant was a director, was attributable to his dishonest conduct. 

The disputed decision was HMRC’s assessment notice dated 6 October 2008, in relation to 1 June 2004 to 31 January 2007, in which HMRC held that BSL’s conduct which resulted in the under-declaration of VAT, was in whole or in part, attributable to Mr Byers’ dishonesty.

The issues considered by the Tribunal included:

  • The imposition of a penalty for under-declaration;

  • Whether delays in proceedings had interfered with Appellant’s Article 6 Convention rights;

  • Whether the Appellant was dishonest within the meaning of section 61 of VATA;

  • The credibility of certain witness evidence;

  • The test of dishonesty for civil evasion penalty;

  • The apportionment of penalty between the company’s deceased officers; and

  • Whether penalty liability under section 6 of VATA was meant to be ‘discrete’.

Hammad was instructed through Vincent Curley & Co Ltd.

Hammad practices tax law and commercial litigation with a specific interest in VAT and Customs and Excise Law.

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