ICAL Fire Safety Ltd v Revenue & Customs [2014] UKFTT 525 (TC) (28 May 2014)

ICAL Fire Safety Ltd v Revenue & Customs [2014] UKFTT 525 (TC) (28 May 2014)

The appellant failed to discharge the burden of proof to show a reasonable excuse for late payment. Reliance on an accounts clerk does not constitute a reasonable excuse under the statute. The penalty was correctly imposed and is not disproportionate.

Citation
[2014] UKFTT 525 (TC)
Parties
Appellant: ICAL Fire Safety Ltd; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
28 May 2014
Procedural Posture
VAT Default Surcharge Appeal / First Tier Tribunal (tax Chamber) Decision on Papers
Outcome
Appeal dismissed
Legal Topics
VAT Default Surcharge, Reasonable Excuse, Penalty Proportionality

Case Brief

Summary, issues, holding and outcome

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Parties

ICAL Fire Safety Ltd

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

VAT Default Surcharge Appeal / First Tier Tribunal (tax Chamber) Decision on Papers

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

Ratio Decidendi

The appellant failed to discharge the burden of proof to show a reasonable excuse for late payment. Reliance on an accounts clerk does not constitute a reasonable excuse under the statute. The penalty was correctly imposed and is not disproportionate.

Court Disposition

Appeal dismissed

Orders

  • The surcharge of £1,041.09 is upheld