Marlico Ltd v Revenue & Customs (VAT - REPAYMENTS : Vat - repayments) [2015] UKFTT 528 (TC) (30 October 2015)

Marlico Ltd v Revenue & Customs (VAT - REPAYMENTS : Vat - repayments) [2015] UKFTT 528 (TC) (30 October 2015)

HMRC's inquiries were not reasonable to the extent they requested documents the Appellant could not possess; the 'stop clock' for reasonable inquiry only applied from 26 April 2013 when HMRC accepted alternative evidence. The total period before payment instruction exceeded 30 days, so a repayment supplement is payable.

Citation
[2015] UKFTT 528
Parties
Appellant: Marlico Limited; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
30 October 2015
Procedural Posture
VAT Repayment Supplement Appeal / First Tier Tribunal (tax Chamber) Final Decision
Outcome
Appeal allowed
Legal Topics
VAT Repayment Supplement, Reasonable Inquiry Period, Section 79 VATA 1994, HMRC Payment Delays
Tax Law VAT VAT Repayment Supplement Reasonable Inquiry Period Section 79 VATA 1994 HMRC Payment Delays

Case Brief

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Parties

Marlico Limited

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

VAT Repayment Supplement Appeal / First Tier Tribunal (tax Chamber) Final Decision

Legal Issues

  1. 1 Whether HMRC delayed VAT repayment beyond the statutory 30-day period under s 79 VATA 1994
  2. 2 Whether HMRC's inquiries were reasonable and when the 'stop clock' for reasonable inquiry applied
  3. 3 When payment was instructed by HMRC for the purposes of s 79(2)(b) VATA 1994

Ratio Decidendi

HMRC's inquiries were not reasonable to the extent they requested documents the Appellant could not possess; the 'stop clock' for reasonable inquiry only applied from 26 April 2013 when HMRC accepted alternative evidence. The total period before payment instruction exceeded 30 days, so a repayment supplement is payable.

Court Disposition

Appeal allowed

Orders

  • HMRC to pay repayment supplement to Marlico Limited for the 02/13 VAT period.