The Special Commissioners can award costs (expenses in Scotland)
against any party who they consider has acted wholly unreasonably
in connection with the hearing of an appeal. This power remains
even if an appeal is withdrawn before it is actually heard. However
before making an award of costs, the Commissioners must give the
person against whom they are considering an order an opportunity to
be heard.
See Reg 21 Special Commissioners Regulations, also SPC468 -
Carvil v Frost
The Special Commissioners have indicated that applications
for costs should be made at the conclusion of the hearing. You
should therefore consult the relevant specialist and Central Policy
Tax Administration Policy in any case where you think it may be
appropriate for the HMRC to seek an award of costs against a
taxpayer or where you are advised or otherwise become aware that
the taxpayer is likely to ask for costs against the HMRC, in
advance of the hearing.
