Fair and just to allow appeal

HMRC issued output tax assessments for £5.57m for periods between 2010 and 2013 to Award Drinks Ltd on the basis that the company had made UK supplies of drink rather than supplies in France. A penalty based on 90% of the tax owed was issued for ‘deliberate and concealed’ behaviour and then 100% of this penalty was recharged to the director Paul Judd by issuing a public liability notice (PLN) because he had control of the company as director and shareholder. He had been the only representative of the company to give oral evidence in the original appeals heard in both the First-tier Tribunal (TC6744) and Upper Tribunal. The company entered voluntary liquidation in 2013.

The previous litigation had upheld the assessments and penalties. This appeal concerned whether the director had the right to change the reason for his initial appeal against the original assessment on...