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

The appellant had no reasonable excuse for late payment, was aware of the consequences, and the penalty was not disproportionate given prior warnings and persistent default.

Citation: [2011] UKFTT 249 (TC)
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 Penalty

Tax Law VAT Default Surcharge Reasonable Excuse Proportionality of Penalty

Case Brief

Summary, issues, holding and outcome

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Full judgment text Downloadable case file Legal principles 2 Authorities cited 2 Party arguments 2 Amounts and remedies 5

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

Ratio Decidendi

The appellant had no reasonable excuse for late payment, was aware of the consequences, and the penalty was not disproportionate given prior warnings and persistent default.

Court Disposition

Appeal dismissed

Orders

The appeal against the default surcharge is dismissed.