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JH and IM Ward (and related appeals) (TC3248)
HMRC issued estimated assessments on a farming partnership in January 2012, for the years 1989/90 to 2007/08. The department also imposed penalties. The taxpayer firm appealed.
The Revenue withdrew the assessments and fines in November 2013, three days before the scheduled hearing of the appeal.
The partnership applied for costs.
The First-tier Tribunal said the tax department had not acted unreasonably, but had taken “a pragmatic decision not to defend the appeal in a similar manner to an appellant who, after receiving advice from counsel, may decide to withdraw an appeal for commercial considerations”.
But the judge decided HMRC had not complied with directions issued by the tribunal, which had led to the partnership’s accountants having to undertake additional work. The Revenue was ordered to pay the costs that arose from its failure.
The taxpayer’s application was allowed in part.
