R (oao Singh) v HMRC; R (oao Singh) v Rose

Administration and appeals: Application for judicial review of p roof of debt

In R (oao Singh) v HMRC; R (oao Singh) v Rose (Upper Tribunal – 19 May) an individual (S) was declared bankrupt in November 2006 after failing to pay PAYE and NIC for several years. S subsequently applied for judicial review of HMRC's proof of debt contending that the amounts demanded were excessive. The Upper Tribunal dismissed his application. Warren J held that HMRC's decision to submit a proof of debt was not 'open to challenge'. The correct course of action would have been for S to have made an application under Insolvency Act 1986 s 303 challenging the trustee's decision to accept HMRC's proof.

Why it matters: The Upper Tribunal confirmed the general view that where the amount which HMRC is claiming in bankruptcy proceedings is disputed the appropriate course of action...