UT/2022/000157 - [2024] UKUT 00346 (TCC)
Upper Tribunal Tax and Chancery Chamber

UT/2022/000157 - [2024] UKUT 00346 (TCC)

Fecha: 10-Jul-2024

Discussion

Discussion

Relevant case law principles

234.

We have been referred by the parties to various case law authorities. It will suffice for us to refer to comments of the Court of Appeal in Fleming at p381:

We make the following general comments on the duty to give reasons.

(1)

The duty is a function of due process, and therefore of justice. Its rationale has two principal aspects. The first is that fairness surely requires that the parties especially the losing party should be left in no doubt why they have won or lost. This is especially so since without reasons the losing party will not know (as was said in Ex parte Dave) whether the court has misdirected itself, and thus whether he may have an available appeal on the substance of the case. The second is that a requirement to give reasons concentrates the mind; if it is fulfilled, the resulting decision is much more likely to be soundly based on the evidence than if it is not.

(2)

The first of these aspects implies that want of reasons may be a good self-standing ground of appeal. Where because no reasons are given it is impossible to tell whether the judge has gone wrong on the law or the facts, the losing party would be altogether deprived of his chance of an appeal unless the court entertains an appeal based on the lack of reasons itself.

(3)

The extent of the duty, or rather the reach of what is required to fulfil it, depends on the subject matter. Where there is a straightforward factual dispute, whose resolution depends simply on which witness is telling the truth about events which he claims to recall, it is likely to be enough for the judge (having, no doubt, summarised the evidence) to indicate simply that he believes X rather than Y; indeed there may be nothing else to say. But where the dispute involves something in the nature of an intellectual exchange, with reasons and analysis advanced on either side, the judge must enter into the issues canvassed before him and explain why he prefers one case over the other. This is likely to apply particularly in litigation where as here there is disputed expert evidence; but it is not necessarily limited to such cases.

(4)

This is not to suggest that there is one rule for cases concerning the witnesses’ truthfulness or recall of events, and another for cases where the issue depends on reasoning or analysis (with experts or otherwise). The rule is the same: the judge must explain why he has reached his decision. The question is always, what is required of the judge to do so; and that will differ from case to case. Transparency should be the watchword.

235.

In summary, the duty to give reasons arises because fairness requires the parties to be left in no doubt as to why they have won or lost. The duty is important in ensuring that judgments are soundly based and to secure the basis for any appeal. Lack of adequate reasons is therefore a good self-standing ground of appeal. The extent of the duty depends on the subject matter, but in cases involving technical issues with reasons advanced on each side, the FTT must enter into the issues canvassed before it, and explain why it prefers one case over the other.

236.

It is clear from the other cases to which we have been referred, principally English and Aria, that the duty must not be set too high (Aria [35]). In particular, there is no duty on the FTT to deal with every argument presented by counsel. It is sufficient if the FTT’s decision shows the parties the basis on which the FTT reached its decision. However, the issues the resolution of which were vital to the FTT’s conclusion should be identified and the manner in which it resolved them explained. If the reasons that the tribunal reached its decision are apparent from a review of the judgment, in the context of the material evidence and submissions, any challenge on the basis of inadequacy of reasons before an appellate court or tribunal should be dismissed (English [17]-[19], [26]).