Ebuyer (UK) Ltd v HMRC

In Ebuyer (UK) Ltd v HMRC [2023] UKFTT 611 (TC) (4 July 2023) the FTT refused HMRC’s application for relief from sanctions for failing to comply with the disclosure of documents under an automatic unless order. Consequently the terms of the unless order applied to bar HMRC from further participation in these proceedings. 

In deciding to refuse HMRC’s application for relief from sanctions for non-compliance with the unless order the FTT applied the three-stage approach set out by the Court of Appeal in Denton v TH White Ltd [2014] EWCA Civ 906 which require:  

• identification and assessment of the seriousness and significance of the failure to comply with the unless order; 
• consideration of the reasons for the default; and 
• evaluation of all the circumstances of the case so as to enable the court to deal justly with the application with particular weight being given to the need for litigation...