The Oxbridge Research Group Ltd v Revenue & Customs [2012] UKFTT 261 (TC) (12 April 2012)

The Oxbridge Research Group Ltd v Revenue & Customs [2012] UKFTT 261 (TC) (12 April 2012)

The Appellant was in default by one day for failing to pay VAT electronically as required; payment by cheque was not permitted and was treated as made when cleared, which was after the due date. There was no reasonable excuse as the Appellant was aware of the requirements and failed to exercise reasonable care. The...

Source-derived case information.

Citation
[2012] UKFTT 261
Parties
Appellant: The Oxbridge Research Group Ltd; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
12 April 2012
Procedural Posture
VAT Default Surcharge Appeal / First Tier Tribunal (tax) Decision
Outcome
Appeal dismissed
Legal Topics
VAT Default Surcharge, Proportionality of Penalties, Reasonable Excuse, Electronic Payment Mandate, Discretion of HMRC, Jurisdiction of Tribunal
Tax Law Administrative Law European Union Law VAT Default Surcharge Proportionality of Penalties Reasonable Excuse Electronic Payment Mandate Discretion of HMRC +1 more

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Summary, issues, holding and outcome

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Parties

The Oxbridge Research Group Ltd

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

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

Legal Issues

  1. 1 Whether the Appellant was in default for late VAT payment by cheque instead of electronic means
  2. 2 Whether there was a reasonable excuse for the default
  3. 3 Whether the penalty imposed was disproportionate under EU law

Ratio Decidendi

The Appellant was in default by one day for failing to pay VAT electronically as required; payment by cheque was not permitted and was treated as made when cleared, which was after the due date. There was no reasonable excuse as the Appellant was aware of the requirements and failed to exercise reasonable care. The Tribunal has jurisdiction to consider proportionality in the individual case, but the penalty, though heavy, was not so unfair as to be disproportionate given the need for an effective penalty regime and the Appellant's history of repeated defaults.

Court Disposition

Appeal dismissed

Orders

  • The appeal against the default surcharge is dismissed.