In Transwaste Recycling and Aggregates Ltd v HMRC [2022] UKFTT 4 (TC) (4 January 2022) the FTT granted the taxpayer its application to allow its appeal on the basis that the prejudice to the company if the appeals were not allowed to proceed outweighed any prejudice to HMRC.
This was an application by the taxpayer company to the FTT for permission to make late appeals against three HMRC decisions; two decisions to refuse deduction of input tax on the basis that the transactions in question were connected with the fraudulent evasion of VAT; and a decision to charge a penalty on the basis that inaccuracies in T’s VAT returns resulted from T’s deliberate behaviour. The total amount of VAT and penalties involved was over £600 000.
The statutory time limits for appealing the decisions expired on 10 March 2016 24 May 2017 and 29 July 2018 respectively and the appeals were made on 24 September 2019. The appeals were therefore between 14 months and 3½ years late. The FTT applied the three-stage test set out in the leading case of Martland v HMRC [2018] UKUT 178 (TCC) that seeks...
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