Codicote Quarry Ltd v Revenue & Customs [2011] UKFTT 171 (TC) (15 March 2011)

Codicote Quarry Ltd v Revenue & Customs [2011] UKFTT 171 (TC) (15 March 2011)

The appellant failed to establish any reasonable excuse in law for late payment of VAT. Cash flow difficulties do not qualify as a reasonable excuse under Section 71(1)(a) VATA 1994. The penalties were not disproportionate given the public interest in VAT compliance.

Citation
[2011] UKFTT 171
Parties
Appellant: Codicote Quarry Limited; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
15 March 2011
Procedural Posture
VAT Penalty Surcharge Appeal / First Tier Tribunal Decision
Outcome
Appeal dismissed
Legal Topics
VAT, Default Surcharge, Reasonable Excuse, Proportionality of Penalties
Tax Law VAT Default Surcharge Reasonable Excuse Proportionality of Penalties

Case Brief

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Parties

Codicote Quarry Limited

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

VAT Penalty Surcharge Appeal / First Tier Tribunal Decision

Legal Issues

  1. 1 Whether the appellant had a reasonable excuse for late payment of VAT
  2. 2 Whether the penalties imposed were disproportionate

Ratio Decidendi

The appellant failed to establish any reasonable excuse in law for late payment of VAT. Cash flow difficulties do not qualify as a reasonable excuse under Section 71(1)(a) VATA 1994. The penalties were not disproportionate given the public interest in VAT compliance.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed.