Narroya v Revenue & Customs (VAT - INPUT TAX : Business purposes) [2015] UKFTT 543 (TC) (27 October 2015)

Narroya v Revenue & Customs (VAT - INPUT TAX : Business purposes) [2015] UKFTT 543 (TC) (27 October 2015)

The Tribunal found that the appellant was aware, at the time of submitting the VAT return, that the vehicles were not being used for business purposes and provided no credible evidence of intention for such use. The behaviour was deliberate but not concealed, justifying the penalty imposed by HMRC.

Citation
[2015] UKFTT 543
Parties
Appellant: Ram Narroya; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
27 October 2015
Procedural Posture
VAT Penalty Appeal / First Tier Tribunal Decision
Outcome
Appeal dismissed
Legal Topics
VAT, Input Tax, Penalties, Deliberate Behaviour, Business Purposes

Case Brief

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Parties

Ram Narroya

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

VAT Penalty Appeal / First Tier Tribunal Decision

  1. 1 Whether the appellant's behaviour in claiming input VAT on vehicles was deliberate within the meaning of Schedule 24 of the Finance Act 2007
  2. 2 Whether there was credible evidence of intention to use the vehicles for business purposes

Ratio Decidendi

The Tribunal found that the appellant was aware, at the time of submitting the VAT return, that the vehicles were not being used for business purposes and provided no credible evidence of intention for such use. The behaviour was deliberate but not concealed, justifying the penalty imposed by HMRC.

Court Disposition

Appeal dismissed

Orders

  • The penalty assessment of £5,545.73 is upheld.