Scott v Revenue & Customs (PROCEDURE : appeal against penalties) [2019] UKFTT 413 (TC) (25 June 2019)

Scott v Revenue & Customs (PROCEDURE : appeal against penalties) [2019] UKFTT 413 (TC) (25 June 2019)

The Tribunal found that the errors relating to undeclared taxable sales and certain input tax claims were deliberate, as Mr Scott must have closed his eyes to the true position, given the fundamental nature of the errors and his responsibilities as a VAT-registered trader. For other periods, the errors were characterized as careless rather than deliberate.

Citation
[2019] UKFTT 413
Parties
Appellant: David Scott; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
25 June 2019
Procedural Posture
Tax Penalty Appeal / First Tier Tribunal Decision
Outcome
Partially allowed; penalties for some periods amended from deliberate to non-deliberate, remainder upheld.
Legal Topics
VAT Penalties, Schedule 24 Finance Act 2007, Deliberate Inaccuracy, Careless Inaccuracy
Tax Law VAT Penalties Schedule 24 Finance Act 2007 Deliberate Inaccuracy Careless Inaccuracy

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Parties

David Scott

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Tax Penalty Appeal / First Tier Tribunal Decision

Legal Issues

  1. 1 Whether the inaccuracies in VAT returns were deliberate or careless under Schedule 24 Finance Act 2007

Ratio Decidendi

The Tribunal found that the errors relating to undeclared taxable sales and certain input tax claims were deliberate, as Mr Scott must have closed his eyes to the true position, given the fundamental nature of the errors and his responsibilities as a VAT-registered trader. For other periods, the errors were characterized as careless rather than deliberate.

Court Disposition

Partially allowed; penalties for some periods amended from deliberate to non-deliberate, remainder upheld.

Orders

  • Penalties in respect of Fuel Scale Charges and incorrect treatment of disbursements upheld.
  • Penalties in respect of undeclared taxable sales upheld.