The tribunal has the power to either confirm or overturn HMRC’s original disputed decision. If finding in the taxpayer’s favour, the tribunal can reduce or increase tax assessments, withdraw penalties, determine that no tax is due, and essentially make any judgement necessary to reach an accurate determination of the appellant’s tax position in law. The tribunal’s decision is legally binding on both the taxpayer and HMRC. Even if unhappy with the outcome, both parties must comply with the judgement.