This week's opinion: 21 February 2019

Many readers will have seen the press’s criticism of HMRC’s conduct in the First-tier Tribunal appeal Pokorowski (TC6970) (tinyurl.com/ftt6970).

In a nutshell, the Revenue attempted to charge a raft of late filing penalties on a homeless man. I am normally reluctant to criticise HMRC without knowing all the circumstances, but here I can see no mitigating factors whatsoever. The way the taxpayer was treated was a disgrace.

It is tempting to look back at the past through rose-coloured spectacles and say: ‘Things were not like in my day.’ And I am convinced that, had I been in charge of the list for a Commissioners’ hearing, my boss would have instructed me to get rid of the case. This might have been simply by withdrawing the penalty. But it could have been more creative, such as ‘accidentally’ filing the documents in the wrong place so nobody could find them, making it impossible to defend the appeal.

Of course, that was then, and this is now. When the tax tribunals were set up, many tax professionals were concerned that everything would have to done by the book with no scope for discretion. I know this can be difficult because it suggests that one taxpayer is being treated differently from another. Further, when HMRC is dealing with large-scale avoidance it is clear that discretion is not appropriate, but cases such as Pokorowski serve only to diminish the standing of HMRC with the public and that cannot be good.

We must iron out these issues sooner rather than later.

If you do one thing…

Do think about entering this year’s Taxation Awards if you have not already done so. The deadline for submitting entries has been extended to 8 March. For more information, visit www.taxationawards.co.uk.

Andrew Hubbard