In Terrance Nolan v HMRC (TC03379 – 3 March 2014) the FTT upheld an assessment for duty unpaid in relation to cigarettes which Mr Nolan had held and controlled regardless of the fact that he had already received a criminal conviction in relation to the same goods.
Mr Nolan contended that it was unlawful for HMRC to raise an assessment for unpaid excise duty as he had already been assessed as part of criminal proceedings and so was assessed twice and punished twice – as HMRC’s assessment was penal in nature.
The FTT found that HMRC had been applying the law on excise duties when raising assessments and that the law was not penal as it applied whether the goods were held lawfully or unlawfully. The FTT added that tax assessments are intended to collect tax not to punish.
The FTT also rejected the contention...
