Blaze Group Holdings Ltd v Revenue & Customs [2011] UKFTT 616 (TC) (07 September 2011)

Blaze Group Holdings Ltd v Revenue & Customs [2011] UKFTT 616 (TC) (07 September 2011)

The Tribunal found that the malicious acts of the employee constituted an exceptional circumstance and a reasonable excuse for the late submission of VAT returns. The appellant had no reason to suspect the employee would not perform her duties, and acted promptly once notified.

Citation
[2011] UKFTT 616 (TC)
Parties
Appellant: Blaze Group Holdings Ltd; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
07 September 2011
Procedural Posture
VAT Default Surcharge Appeal / First Tier Tribunal (tax) Decision
Outcome
Appeal allowed
Legal Topics
VAT, Default Surcharge, Reasonable Excuse, Reliance on Employee, Electronic Submission of Returns
Tax Law VAT Default Surcharge Reasonable Excuse Reliance on Employee Electronic Submission of Returns

Case Brief

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Parties

Blaze Group Holdings Ltd

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

VAT Default Surcharge Appeal / First Tier Tribunal (tax) Decision

Legal Issues

  1. 1 Whether the appellant had a reasonable excuse for late submission of VAT returns
  2. 2 Whether reliance on an employee can constitute a reasonable excuse under s71(1)(b) VATA

Ratio Decidendi

The Tribunal found that the malicious acts of the employee constituted an exceptional circumstance and a reasonable excuse for the late submission of VAT returns. The appellant had no reason to suspect the employee would not perform her duties, and acted promptly once notified.

Court Disposition

Appeal allowed

Orders

  • VAT default surcharges cancelled