In Western Ferries (Clyde) Ltd v HMRC (TC01388 – 21 September) a company which had unsuccessfully appealed to the Special Commissioners against notices of amendment charging tonnage tax subsequently applied for costs contending that HMRC had acted unreasonably in that it had submitted three different grounds for issuing the notices.
The First-tier Tribunal dismissed the application holding that the Revenue had not acted unreasonably.
Why it matters: SI 1994/1811 reg 21(1) provided that the Special Commissioners could award costs where a party to an appeal had acted wholly unreasonably.
There have been several cases where indemnity costs have been awarded against HMRC where it has lost an appeal but it seems somewhat optimistic to make an application in a case where HMRC has won the appeal.
Many barristers will consider it advisable to...
