CG Steel Structures Ltd v Revenue & Customs [2014] UKFTT 504 (TC) (21 May 2014)

CG Steel Structures Ltd v Revenue & Customs [2014] UKFTT 504 (TC) (21 May 2014)

The appellant failed to discharge the burden of proof that the late VAT payments were due to unforeseen circumstances or events beyond its control. The underlying cause was cash flow shortage from trading conditions and delayed CIS refund, but no timely request for set off was made. Insufficiency of funds alone is not a reasonable excuse. The surcharges were correctly imposed and not disproportionate.

Citation
[2014] UKFTT 504 (TC)
Parties
Appellant: C G Steel Structures Limited; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
21 May 2014
Procedural Posture
VAT Default Surcharge Appeal / First Tier Tribunal (tax Chamber) Decision
Outcome
Appeal dismissed
Legal Topics
VAT Default Surcharge, Reasonable Excuse, Insufficiency of Funds, CIS Refund, Penalty Proportionality
Tax Law VAT Default Surcharge Reasonable Excuse Insufficiency of Funds CIS Refund Penalty Proportionality

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Parties

C G Steel Structures Limited

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. 1 Whether the appellant had a reasonable excuse for late VAT payment
  2. 2 Whether the penalty imposed was disproportionate

Ratio Decidendi

The appellant failed to discharge the burden of proof that the late VAT payments were due to unforeseen circumstances or events beyond its control. The underlying cause was cash flow shortage from trading conditions and delayed CIS refund, but no timely request for set off was made. Insufficiency of funds alone is not a reasonable excuse. The surcharges were correctly imposed and not disproportionate.

Court Disposition

Appeal dismissed

Orders

  • Surcharges for VAT periods 04/13 and 07/13 upheld