Tarafdar v HMRC

In Tarafdar v HMRC ([2014] UKUT 0362 – 8 August 2014) the UT found that HMRC had not been unreasonable in not withdrawing at an earlier stage.

The issue was whether HMRC had unreasonably prolonged matters once they were in the tribunal. The FTT had concluded that having regard to the basis on which the application had been made and to the ‘disproportionate enquiry’ that would be needed to resolve the matter it was not prepared to exercise its discretion in Mr Tarafdar’s favour.

The UT found that the FTT had been wrong to regard the necessary enquiry as encompassing the resolution of the best judgment issue (which was the substantive issue) irrespective of the way in which the application had been put. The UT therefore considered whether the FTT’s decision should be set aside.

HMRC had decided to withdraw because it was unable to obtain...