25 March 2020
Provisional Practice Statement First-Tier Tribunal Categorisation
Tax Cases In The Tax Chamber
Provisional Practice Statement
First-tier Tribunal
Categorisation of Tax Cases in the Tax Chamber
This Practice Statement has been
made by the Chamber President with the consent of the Senior President of
Tribunals to give guidance to the Tax Chamber and Tribunal users in relation to
the categorisation of cases during the Covid-19 pandemic. It is necessary for the Tax Chamber to change
the way it allocates cases to the Default Paper cases category in order to
manage the Chamber’s workload appropriately. This Practice Statement is issued on a
provisional basis for a period of six months, although it may be reviewed
within that period should it become inappropriate or unnecessary and may be amended
or revoked at any time.
Introduction
1.
Rule 23 of the Tribunal Procedure (First-tier
Tribunal) (Tax Chamber) Rules 2009 provides that when the Tribunal receives a
notice of appeal, application notice or notice of reference, the Tribunal must
give a direction allocating the case to one of the categories set out in that
Rule, namely:
(1)
Default Paper cases (which will usually be
disposed of without a hearing);
(2)
Basic cases (which will usually be disposed of
after a hearing, with minimal exchange of documents before the hearing);
(3)
Standard cases (which will usually be subject to
more detailed case management and be disposed of after a hearing); and
(4)
Complex cases (to which special rules apply in
relation to costs awards and eligibility for transfer to the Upper Tribunal).
2.
The Tribunal may, either on the application of a
party or on its own initiative, give a further direction at any time
re-allocating a case to a different category.
3.
This Practice Statement sets out the practice of
the Tribunal with regard to the allocation of tax cases to categories. Nothing in it affects the powers or
discretion of the Tribunal in relation to case categorisation generally, nor
the ability of any party to an appeal to make any application regarding
categorisation of that appeal. The fact
that a case falls within the descriptions set out in this Practice Statement
for a particular category does not mean that the case must, or will, be
allocated to that category.
Default Paper cases
1.
When the Tribunal receives a notice of appeal,
application notice or notice of reference in one of the following types of
cases, the Tribunal will allocate the case to the Default Paper category unless
the Tribunal considers that there is a reason why it is appropriate to allocate
the case to a different category.
(1)
In relation to all taxes and duties, appeals
against penalties amounting to not more than £20,000 for late filing of
returns, statements, accounts or documents and late submission of notices of
being chargeable to tax.
(2)
Appeals against penalties amounting to not more
than £20,000 for late payment of any tax or duty
Basic cases
5.
When the Tribunal receives a notice of appeal,
application notice or notice of reference in one of the following types of
cases, the Tribunal will allocate the case to the Basic category unless the
case is of a type listed in paragraph 4
(Default Paper cases) or the Tribunal considers that there is a reason why it
is appropriate to allocate the case to a different category.
(1)
Appeals
(a)
against penalties for late filing of returns and
documents and late payment of duties;
(b)
against penalties for inaccurate returns or
documents, except where the penalties are for deliberate action or cases where
an appeal is also brought against the assessment of the tax to which the return
or document relates;
(c)
seeking the mitigation or reduction of
penalties, and those in which a reasonable excuse is asserted;
(d)
against information notices and penalties for
non-compliance with information notices; and
(e)
against Pay As You Earn (PAYE) coding notices.
(2)
Applications
(a)
for permission to make or notify a late appeal;
(b)
for an indirect tax appeal to be entertained
without payment of tax or duty on grounds of hardship (hardship applications);
(c)
for the postponement of the payment of tax
pending the determination of an appeal; and
(d)
for a direction that HMRC close an enquiry into
a personal, partnership or company self-assessment return.
Standard cases
6.
Any case that is not allocated to any of the
Default Paper, Basic or Complex categories will be categorised as a Standard
case.
Complex cases
7.
Rule 23 provides that the Tribunal may allocate
a case as a Complex case only if the Tribunal considers that the case:
(1)
will require lengthy or complex evidence or a
lengthy hearing;
(2)
involves a complex or important principle or
issue; or
(3)
involves a large financial sum.
8.
The Tribunal will assess whether, having regard
to the nature of a particular case, any one or more of these criteria are
satisfied. In making this assessment the
Tribunal will take into account all the circumstances, including the
implications of the costs-shifting regime (subject to the right of the taxpayer
to opt out) and the fact that cases allocated to the Complex category are
eligible, subject to various consents, to be transferred to the Upper Tribunal.
9.
If on such an assessment the Tribunal considers
that a case meets the stated criteria, it will, in the absence of special
factors, allocate the case to the Complex category.
Judge Greg Sinfield
Chamber President
23 March 2020