Mr George Waller v Commissioners for Her Majesty's Revenue and Customs

Decision date: 27 September 2010

Neutral citation: Neutral citation not available

Overall AI summary confidence: high

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Short overview

This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.

AI confidence in this short overview: high

Mr Waller, a self‑employed taxi driver, sought an award of costs after HMRC withdrew closure and discovery assessments and a penalty following an enquiry. The Tribunal, applying Rule 21 (the Special Commissioners' costs rule preserved by transitional provisions), held it could consider only HMRC's conduct from when the appeals were before the Special Commissioners (22 Jan–2 Apr 2009) and that HMRC did not act "wholly unreasonably" in that period. The application for costs was refused.

Ratio decidendi

This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.

AI confidence in this ratio decidendi summary: high

The Tribunal treated Rule 21 as permitting costs only for conduct "of, or incidental to, the hearing" and only where a party has acted "wholly unreasonably," a demanding and restrictive standard; transitional provisions restrict the First‑tier Tribunal to awarding only what the Special Commissioners could have ordered before 1 April 2009. The adequacy and timing of an internal review undertaken while proceedings are before the tribunal are relevant to assessing whether HMRC acted wholly unreasonably.

Obiter dicta

This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.

AI confidence in this obiter dicta summary: medium

The Tribunal observed that authorities showing HMRC bad faith are of limited assistance where no similar bad faith or continuing unreasonable conduct during the relevant tribunal period is alleged, and expressed sympathy for taxpayers facing professional fees while noting Rule 21 is not a general "loser pays" rule.

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