Armkor Ltd v Revenue & Customs [2014] UKFTT 140 (TC) (29 January 2014)
The Tribunal found that the illness and unexpected death of the administrator constituted a reasonable excuse for the 09/11 period, but by 03/12 the appellant should have implemented adequate procedures. The penalty for 03/12 was not disproportionate given the facts and the appellant's compliance history.
- Citation
- [2014] UKFTT 140 (TC)
- Parties
- Appellant: Armkor Ltd; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
- Jurisdiction
- United Kingdom
- Judgment Date
- 29 January 2014
- Procedural Posture
- VAT Default Surcharge Appeal / First Tier Tribunal (tax Chamber) Decision
- Outcome
- Appeal allowed in part, dismissed in part.
- Legal Topics
- VAT Default Surcharge, Reasonable Excuse, Proportionality of Penalty
Case Brief
Summary, issues, holding and outcome
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Parties
Armkor Ltd
Appellant
The Commissioners for Her Majesty’s Revenue & Customs
Respondents
Procedural Posture
VAT Default Surcharge Appeal / First Tier Tribunal (tax Chamber) Decision
Legal Issues
- 1 Whether the appellant had a reasonable excuse for late VAT payment for periods 09/11 and 03/12
- 2 Whether the penalty imposed was disproportionate
Ratio Decidendi
The Tribunal found that the illness and unexpected death of the administrator constituted a reasonable excuse for the 09/11 period, but by 03/12 the appellant should have implemented adequate procedures. The penalty for 03/12 was not disproportionate given the facts and the appellant's compliance history.
Court Disposition
Appeal allowed in part, dismissed in part.
Orders
- Default surcharge penalty for 09/11 period removed.
- Default surcharge penalty for 03/12 period upheld.
Full Case Text
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