Contentisking Ltd v Revenue & Customs (VAT - PENALTIES : Reasonable excuse) [2019] UKFTT 64 (TC) (28 January 2019)

Contentisking Ltd v Revenue & Customs (VAT - PENALTIES : Reasonable excuse) [2019] UKFTT 64 (TC) (28 January 2019)

The Appellant's failure to be aware of the bank's same day transfer limit does not amount to a reasonable excuse under the statutory test, and the penalty imposed is not disproportionate in the circumstances, as this is not a wholly exceptional case.

Citation
[2019] UKFTT 64 (TC)
Parties
Appellant: Contentisking Limited; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
28 January 2019
Procedural Posture
VAT Default Surcharge Appeal / First Tier Tribunal Decision
Outcome
Appeal dismissed
Legal Topics
Default Surcharge, Reasonable Excuse, Proportionality of Penalty
Tax Law VAT Default Surcharge Reasonable Excuse Proportionality of Penalty

Case Brief

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Parties

Contentisking Limited

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

VAT Default Surcharge Appeal / First Tier Tribunal Decision

Legal Issues

  1. 1 Whether failure to pay VAT on time due to unawareness of bank transfer limit constitutes a reasonable excuse
  2. 2 Whether the penalty imposed is disproportionate to the gravity of the infringement

Ratio Decidendi

The Appellant's failure to be aware of the bank's same day transfer limit does not amount to a reasonable excuse under the statutory test, and the penalty imposed is not disproportionate in the circumstances, as this is not a wholly exceptional case.

Court Disposition

Appeal dismissed

Orders

  • Default surcharge liability of £4,670.11 upheld