Dada Records Ltd v Revenue & Customs [2009] UKFTT 251 (TC) (02 September 2009)

Dada Records Ltd v Revenue & Customs [2009] UKFTT 251 (TC) (02 September 2009)

HMRC failed to take into account material information available to them regarding the circumstances of Fopp Ltd's insolvency and the differences in scale and operation between Fopp Ltd and Dada Records Ltd. Had this information been considered, it is not inevitable that the same decision to require security would have been made. Therefore, the appeal is allowed.

Citation
[2009] UKFTT 251 (TC)
Parties
Appellant: Dada Records Ltd; Respondents: The Commissioners for Her Majesty’s Revenue and Customs (VAT)
Jurisdiction
United Kingdom
Judgment Date
02 September 2009
Procedural Posture
Appeal / First Tier Tribunal (tax) Decision
Outcome
Appeal allowed
Legal Topics
VAT Security Requirement, Reasonableness of HMRC Decision, Consideration of Relevant Material
Tax Law VAT Security Requirement Reasonableness of HMRC Decision Consideration of Relevant Material

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Parties

Dada Records Ltd

Appellant

The Commissioners for Her Majesty’s Revenue and Customs (VAT)

Respondents

Procedural Posture

Appeal / First Tier Tribunal (tax) Decision

Legal Issues

  1. 1 Whether HMRC acted reasonably in requiring security for VAT under VAT Act 1994 Sch 11 para 4(2)
  2. 2 Whether HMRC failed to consider relevant material regarding the appellant's circumstances
  3. 3 Whether the decision would inevitably have been the same if all material had been considered

Ratio Decidendi

HMRC failed to take into account material information available to them regarding the circumstances of Fopp Ltd's insolvency and the differences in scale and operation between Fopp Ltd and Dada Records Ltd. Had this information been considered, it is not inevitable that the same decision to require security would have been made. Therefore, the appeal is allowed.

Court Disposition

Appeal allowed

Orders

  • Notice of Requirement for security set aside