GC FIELD & SON LTD & Ors v Revenue & Customs (COSTS - application for unreasonable costs - whether failure by HMRC to adduce evidence)

COSTS - application for unreasonable costs - whether failure by HMRC to adduce evidence in support discovery assessment was unreasonable - yes - whether sufficient to justify cost shifting - yes - reasonable award in the circumstances - �1

             This is an application for costs made collectively by GC Field & Sons Ltd, Geoffrey Barnwell Field, Barnwell Charls Field, and GC Field & Sons (Feltwell Estate) Limited ( Field Appellants ) and Simon Shaw and Lisa Shaw ( Shaw Appellants ) pursuant to section 29 Tribunal Courts and Enforcement Act 2007 ( TCEA ) and rule 10(1)(b) Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009 ( FTT Rules ).

             The application is made following the judgment issued by Judge Marilyn McKeever dated 19 August 2021 [2021] UKFTT 297 (TC) .

             The appeals were lodged and stayed.� Following the outcome of other litigation in respect of a similar tax avoidance scheme the Appellant amended its grounds of appeal and HMRC lodged a statement of case.

             The amended grounds for the Shaw Appellants were drafted differently but, as regards the validity of the discovery assessments stated: �the Discovery Assessment is not valid as the restrictions in Paragraph 30 of Schedule 10 Finance Act 2003 have not been met � A full disclosure letter was sent to HMRC on 20 February 2013�.� It is at least implicit that the Shaw Appellants did not consider negligence to have been a basis for the discovery assessments.