The tax and customs authorities are not infallible, but questioning their decisions can feel like the struggle between David and Goliath. However, an air passenger who was accused of dishonesty after landing at Heathrow with thousands of cigarettes in his luggage successfully showed that the balance of power is not all one way.
When the passenger landed, he was carrying more than 3,000 cigarettes and 0.5 kg of rolling tobacco in his hand luggage. A further 10,000 cigarettes were in his hold luggage. After he was stopped by customs officers, all the tobacco products were seized. HM Revenue and Customs subsequently asserted that he had acted dishonestly and issued him with civil evasion penalties totalling £2,524.
In challenging those penalties, he did not dispute that he was importing tobacco products in excess of his allowance but asserted that he had always intended to declare them. He pointed out that he had not walked through the green ‘nothing to declare’ channel and that he was in the airport’s ‘airside’ area when stopped.
He was in transit to Manchester Airport and his hold luggage was to be transferred onto the ongoing aircraft without any intervention from him. The tobacco products in his hand luggage, which he had bought duty free in Hong Kong, were in clear plastic bags and there was no attempt at concealment. He believed that his obligation was to declare all the tobacco products at his final destination.
In upholding his appeal, the First-tier Tribunal found that he had a mistaken belief that he was not required to declare the tobacco products in his hand luggage prior to his arrival in Manchester. He had not been dishonest and his conduct would not have been regarded as such by an ordinary person. The penalties were overturned.