In HMRC v Sintra Global [2025] EWCA Civ 1661 the Court of Appeal (Civil Division) has ruled on an important question of principle concerning the burden of proof when a civil penalty is imposed by the Commissioners for His Majesty’s Revenue and Customs (“HMRC”) on a taxpayer, and the taxpayer wishes to challenge the penalty on the ground that the underlying liability to tax which underpins the penalty is wrong.
Reversing the Upper Tribunal decision, the Court agreed with HMRC that the legal burden of proof rests on the taxpayer to establish in the penalty proceedings that he is not liable to the underlying tax, in the same way as it normally would on an appeal by the taxpayer against the relevant assessment. The Court of Appeal rejected the taxpayer’s argument that the legal burden of proof rests on HMRC to establish the correctness of the underlying liability because tax penalty proceedings in the UK are treated as giving rise to “criminal charges” within the meaning of Article 6(1) of the European Convention for the Protection of Human Rights.
Ben Hayhurst of 187 Chambers appeared for HMRC leading Sam Way of Devereux Chambers.
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