The number of appeals to tax tribunals has jumped 14% in the past year, as HM Revenue & Customs takes on a tougher stance to collect tax and impose penalties for non-compliance. In 2008 the number of taxpayers claiming to have been overtaxed or unfairly punished by the taxman leaped, according to accountancy firm UHY Hacker Young. The number of cases received by the VAT and Duties Tribunal and the Special Commissioners Tribunal, which heard appeals lodged by taxpayers against decisions made by HMRC, increased from 4,311 in 2007 to 4,897 in 2008. The accountancy firm says the introduction of a new Litigation and Settlement Strategy by HMRC - under which it says it will fight a case through the courts rather than negotiate a settlement if the case is strong enough - has also contributed to the number of cases heard by the tax tribunals. Roy Maugham, tax partner at UHY Hacker Young, said: 'HMRC seems to be less and less deterred by the cost of litigation. It is now much more prepared to go all the way through the Tribunals rather than negotiate a fair settlement with the taxpayer as it used to. It is doubtful whether this is the most effective and pragmatic way to solve problems.' Commenting on the matter, an HMRC spokesman said that the increase in appeals is largely linked to a handful of VAT cases. "The appeals process is there to help HMRC and taxpayers clarify points of tax law. Our updated powers and litigation and settlement strategy ensures that when the principle being contested is clear and well understood the tax rules are properly enforced," the spokesman said.