Digitop Ltd v Revenue & Customs [2011] UKFTT 249 (TC) (14 April 2011)

Digitop Ltd v Revenue & Customs [2011] UKFTT 249 (TC) (14 April 2011)

The appellant had no reasonable excuse for late payment, was a persistent defaulter, and the penalty imposed was not disproportionate in the circumstances. The statutory surcharge regime applies and the appeal is dismissed.

Citation
[2011] UKFTT 249
Parties
Appellant: Digitop Limited; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
14 April 2011
Procedural Posture
VAT Penalty Appeal / First Tier Tribunal (tax Chamber) 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

Summary, issues, holding and outcome

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Parties

Digitop Limited

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

VAT Penalty Appeal / First Tier Tribunal (tax Chamber) Decision

Legal Issues

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

Ratio Decidendi

The appellant had no reasonable excuse for late payment, was a persistent defaulter, and the penalty imposed was not disproportionate in the circumstances. The statutory surcharge regime applies and the appeal is dismissed.

Court Disposition

Appeal dismissed

Orders

  • The appeal against the default surcharge is dismissed.