Alan Piper v Her Majesty's Revenue & Customs

Decision date: 26 January 2022

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 Piper appealed historic HMRC tax assessments and associated surcharges and interest dating mainly from 1999/2000 and 2000/2001, but the Tribunal found the appeal was brought about 16–18 years late. Applying the established three-stage test for permission to bring out-of-time tax appeals, the Tribunal concluded there was no good reason for the very long delay, the appeal had no realistic prospect of success on the interest issue, and refused permission to admit the late appeal. The Tribunal also held it had no power to amend or waive statutory interest or to give effect to an alleged agreement not to collect interest. Parties have 56 days to seek permission to appeal to the Upper Tribunal.

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 applied a three-stage test for granting permission for out-of-time tax appeals: (1) assess the seriousness/significance of the delay (very long delays measured in years weigh heavily against permission); (2) consider the reasons for the delay; and (3) balance all circumstances including prejudice to the respondent and prospects of success. The Tribunal further held its jurisdiction is limited to statutory powers and does not extend to varying or waiving statutory interest.

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 judgment remarks that an unexplained long interval in HMRC pursuing a debt and the absence of regular statements may be relevant factors in the balancing exercise, though not determinative; it also notes that granting permission after very long delay would prejudice HMRC by reopening matters they were entitled to treat as final.