Following the decision in Innocent Ltd v HMRC (No 1) 2011 SFTD 111 HMRC applied for costs. In Innocent Ltd v HMRC (No 2) (TC01450 – 14 October) the tribunal granted the application. Judge Mosedale observed that the company had claimed a repayment of £27 000 000 and that the hearing had lasted for six days. The Parliamentary Statement reproduced at 1978 VATTR 266 had made it clear that HMRC would apply for costs in such cases.
Why it matters: Where a case involves several million pounds HMRC will usually apply for costs.
