M and N Beauty Limited v The Commissioners for HMRC

Facts

M and N Beauty Limited imports hair extension products from Nigeria into the United Kingdom. On 23 November 2022 Border Force officers at Tilbury examined a container consigned to it and found 506,400 undeclared cigarettes concealed amongst goods declared as hair products and food products. The cigarettes were seized. The company did not challenge the seizure in the Magistrates' Court. It requested restoration on 3 December 2022, was refused on 20 January 2023, and did not appeal that refusal. HMRC then imposed a combined civil evasion penalty of £181,201 under section 8 of the Finance Act 1994 and section 25 of the Finance Act 2003, which was upheld on internal review on 25 January 2024. The company appealed to the First-tier Tribunal. Its case was that it used a legitimate 'groupage' arrangement, under which third parties' goods were consolidated into its containers. It said the cigarettes had been loaded in Nigeria by a third party, 'Mr Abiodun', without its knowledge, and its Nigerian loading agent, Mr Bosun Dare of Infinity Limited, gave evidence to that effect. The company had earlier been represented by Lawmans Solicitors and then Buzzacott LLP. At the hearing it appeared through its director, Mr Moses Okeoma. Both sides applied to rely on late evidence. Under rule 15(2) of the Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009, the Tribunal admitted import data, evidence of three previous tobacco seizures, Buzzacott's correspondence and Mr Dare's witness statement. It declined to admit a GOV.UK guidance printout as immaterial.