Mesfin v Revenue & Customs [2014] UKFTT 499 (TC) (20 May 2014)

Mesfin v Revenue & Customs [2014] UKFTT 499 (TC) (20 May 2014)

The Tribunal accepted the appellant's evidence as to the level of his turnover, finding him to be honest and credible, and concluded that his turnover was at the levels indicated by his own figures. The Tribunal could not itself deregister the appellant for periods when turnover fell below the threshold but strongly requested HMRC to exercise its discretion to do so. The Tribunal also accepted that penalties should be reduced in light of the appellant's honesty and cooperation.

Citation
[2014] UKFTT 499
Parties
Appellant: Girma Mesfin; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
20 May 2014
Procedural Posture
VAT Appeal / First Tier Tribunal (tax) Substantive Decision
Outcome
Appeal allowed in part
Legal Topics
VAT Registration, VAT Deregistration, Calculation of Taxable Turnover, Penalties for Non Registration, Evidential Burden in Tax Appeals
Tax Law VAT Registration VAT Deregistration Calculation of Taxable Turnover Penalties for Non Registration Evidential Burden in Tax Appeals

Case Brief

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Parties

Girma Mesfin

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

VAT Appeal / First Tier Tribunal (tax) Substantive Decision

Legal Issues

  1. 1 Whether the appellant's turnover exceeded the VAT registration threshold for relevant periods
  2. 2 Whether HMRC should exercise discretion to deregister the appellant for periods when turnover fell below the deregistration threshold
  3. 3 Appropriate calculation of VAT and penalties given the factual circumstances

Ratio Decidendi

The Tribunal accepted the appellant's evidence as to the level of his turnover, finding him to be honest and credible, and concluded that his turnover was at the levels indicated by his own figures. The Tribunal could not itself deregister the appellant for periods when turnover fell below the threshold but strongly requested HMRC to exercise its discretion to do so. The Tribunal also accepted that penalties should be reduced in light of the appellant's honesty and cooperation.

Court Disposition

Appeal allowed in part

Orders

  • Appellant's turnover figures accepted for VAT calculation purposes
  • Strong request to HMRC to exercise discretion to deregister appellant for periods when turnover fell below threshold