Igor Kolosov v The Commissioners for HMRC
Decision date: 9 January 2025
Neutral citation: [2025] UKFTT 29 (TC)
Overall AI summary confidence: high
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
This appeal concerned whether Igor Kolosov was liable to a £1,109,311 HMRC excise duty assessment after 3,602,800 counterfeit cigarettes were found at premises on 28 October 2019. The Tribunal found Kolosov had physical possession and exercised control of the goods at the relevant excise duty point and so was "holding" the goods under reg. 6(1)(b); his lack of knowledge, ownership or financial means did not absolve him. The appeal was dismissed and the assessment upheld.
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
A person is "holding" excise goods for the purposes of reg. 6(1)(b) if they have physical possession of and/or exercise direction or control over the goods at the relevant excise duty point; ownership, awareness of duty or intention to avoid duty is not required. Where HMRC establishes who was holding the goods at the first assessable duty point, that person may be assessed.
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 reiterated the Directive’s policy aim of broadly preventing evasion by casting a wide net and treated liability in strict terms, indicating there is no room in these circumstances for an "innocent agent" defence; the appellant’s impecuniosity and personal circumstances do not provide a basis to evade an assessment.