Leach v Revenue & Customs (VAT - assessment to reclaim overpaid input tax) [2019] UKFTT 352 (TC) (03 June 2019)

Leach v Revenue & Customs (VAT - assessment to reclaim overpaid input tax) [2019] UKFTT 352 (TC) (03 June 2019)

The Tribunal found Mr Leach deliberately overclaimed VAT by knowingly submitting incorrect returns and destroying supporting records, thus justifying both the assessment (including the extended 20-year time limit for deliberate behaviour) and the penalty for deliberate and concealed inaccuracies. The assessment was made to best judgement using the only reliable evidence available. The penalty was correctly calculated and no special circumstances warranted reduction.

Citation
[2019] UKFTT 352 (TC)
Parties
Appellant: Anthony Leach; Respondents: The Commissioners for Her Majesty's Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
03 June 2019
Procedural Posture
VAT Assessment and Penalty Appeal / First Tier Tribunal (tax Chamber) Decision
Outcome
Appeal dismissed; assessment and penalty upheld in full.
Legal Topics
VAT Assessment, Input Tax, Deliberate Behaviour, Concealed Inaccuracies, Penalties, Extended Time Limits
Tax Law VAT Assessment Input Tax Deliberate Behaviour Concealed Inaccuracies Penalties Extended Time Limits

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Parties

Anthony Leach

Appellant

The Commissioners for Her Majesty's Revenue and Customs

Respondents

Procedural Posture

VAT Assessment and Penalty Appeal / First Tier Tribunal (tax Chamber) Decision

Legal Issues

  1. 1 Whether the VAT assessment to reclaim overpaid input tax was valid and made to best judgement
  2. 2 Whether the extended 20-year time limit for deliberate behaviour under VATA s 77 applied
  3. 3 Whether the penalty for deliberate and concealed inaccuracies under Finance Act 2007, Sch 24 was properly imposed

Ratio Decidendi

The Tribunal found Mr Leach deliberately overclaimed VAT by knowingly submitting incorrect returns and destroying supporting records, thus justifying both the assessment (including the extended 20-year time limit for deliberate behaviour) and the penalty for deliberate and concealed inaccuracies. The assessment was made to best judgement using the only reliable evidence available. The penalty was correctly calculated and no special circumstances warranted reduction.

Court Disposition

Appeal dismissed; assessment and penalty upheld in full.

Orders

  • Assessment of £49,857 VAT overclaimed upheld
  • Penalty of £47,364.15 for deliberate and concealed inaccuracies upheld