Application granted but not enforced

HMRC made an application that the taxpayer pay the costs the department incurred when defending the appeal. The taxpayer had at two previous First-tier Tribunal hearings been found liable to pay penalties for failing to comply with an information notice issued under FA 2008 Sch 36. It sought costs in relation to the second appeal only.

The Revenue said the taxpayer’s behaviour had been unreasonable in that he had made no effort to support his position in his appeal. Indeed the judge at the first hearing had said the taxpayer should have known the appeal was ‘hopeless’ because he had brought no new arguments to the proceedings. Further the taxpayer had attended neither hearing.

The First-tier Tribunal said it should have been clear to the taxpayer that his second appeal was ‘doomed to failure’ because his grounds of appeal did not relate to the penalties he was disputing....