If the taxpayer mentions that s/he is thinking of asking for a stated case from the General Commissioners make sure that the taxpayer realises the potentially high cost of taking a case to the High Court. Do this in a neutral way that points out the consequences of losing in the High Court. Be very careful not to sound threatening and don’t make the taxpayer feel under pressure not to pursue the appeal.
In certain classes of cases, the Commissioners for HMRC will not
ask for the costs of the Crown to be paid by the taxpayer in the
event of a Court decision favourable to HMRC, and, in special
circumstances, will be prepared to pay the taxpayer's costs.
Influential factors include the risk of financial hardship to the
taxpayer and whether the case is one of significant interest to
taxpayers as a whole, turning on a point of law in need of
clarification.
A precise definition of the cases to which this treatment
will be applied is not possible and the application of the
treatment will be considered in the light of the facts of the
particular case.
You should report immediately to Cross Cutting Policy (London Technical Unit) (Advice on Appeals) any case (whether decided by the Commissioners in favour of the taxpayer or HMRC) in which a taxpayer raises the question of the payment of costs of an appeal to the High Court.
