R & E Goonesena v The Commissioners for HMRC

Decision date: 25 June 2024

Neutral citation: [2024] UKFTT 619 (TC)

Overall AI summary confidence: medium

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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: medium

This case concerns the Goonesenas' application for permission to file late appeals against HMRC SDLT discovery assessments. The First-tier Tribunal applied a Denton-style three-stage test (length of delay, reasons for default, and overall justice including prejudice and merits) and refused permission, finding a 164-day delay was serious, resulted from a conscious decision not to appeal in time, and was not justified. The application to notify appeals late was therefore denied; parties may seek permission to appeal to the Upper Tribunal within 56 days.

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: medium

The Tribunal treated Schedule 10 para 36G permission to notify late appeals as requiring a three-stage Denton-type assessment: (1) quantify the length of delay, (2) identify and evaluate the reason for default, and (3) balance all the circumstances (including prejudice and the merits) to decide whether to grant permission. A deliberate choice by the appellants not to pursue a timely appeal, particularly where they had used advisers previously, weighs against excusing delay.

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 the financial value of the claim is a relevant factor in assessing prejudice but is not necessarily decisive against enforcing time limits. It also noted that where factual disputes affect key merits (for example, whether a disclosure was made), the Tribunal should generally avoid conducting a detailed merits assessment at the permission stage.