Wexo Ltd v Revenue & Customs [2014] UKFTT 92 (TC) (13 January 2014)

Wexo Ltd v Revenue & Customs [2014] UKFTT 92 (TC) (13 January 2014)

The penalty imposed was substantial but not devoid of reasonable foundation, given the Appellant's repeated defaults and the statutory calculation. The Appellant failed to discharge the burden of proof for a reasonable excuse, and the penalty was not disproportionate under the legal principles established by precedent.

Citation
[2014] UKFTT 92 (TC)
Parties
Appellant: Wexo Limited; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
13 January 2014
Procedural Posture
VAT Default Surcharge Appeal / Final Judgment at First Tier Tribunal (tax Chamber)
Outcome
Appeal dismissed
Legal Topics
VAT Default Surcharge, Reasonable Excuse, Proportionality of Penalty

Case Brief

Summary, issues, holding and outcome

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Parties

Wexo Limited

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

VAT Default Surcharge Appeal / Final Judgment at First Tier Tribunal (tax Chamber)

  1. 1 Whether the penalty of £6,009.48 for late VAT payment was unfair and disproportionate
  2. 2 Whether the Appellant had a reasonable excuse for late payment

Ratio Decidendi

The penalty imposed was substantial but not devoid of reasonable foundation, given the Appellant's repeated defaults and the statutory calculation. The Appellant failed to discharge the burden of proof for a reasonable excuse, and the penalty was not disproportionate under the legal principles established by precedent.

Court Disposition

Appeal dismissed

Orders

  • Surcharge of £6,009.48 upheld