Pegasus Birds Ltd v Commissioners of Customs and Excise: CA 10 Feb 2000

The company were said to have kept inadequate VAT Records. The parties disputed the sums due or evaded, and an assessment was only finally issued in 1997, at which point the taxpayer said that the assessment was out of time under section 73(6)(b).
Held: The taxpayer’s appeal failed. The limit of one year imposed upon the raising of an assessment by the commissioners was intended to protect the taxpayer, and not to penalise the commissioners. Accordingly it was appropriate to allow an assessment raised after the time limit, but where the information which made the assessment appropriate had been discovered by the commissioners later.
Whether or not and when the information on which the late assessment was issued was a matter for the opinion of the Commissioner founded on the facts. In this case the Commissioner’s conclusion was not one that no reasonable commissioner could have reached.


Aldous LJ


Times 10-Feb-2000, [2000] STC 91


Value Added Tax Act 1994 73(6)(b)


England and Wales


Appeal fromPegasus Birds Ltd v H M Customs and Excise Admn 27-Nov-1998
The Excise Commissioners eventually issued an assessment to VAT in 1997 for 1993 after commencing their investigations in 1993.
Held: Section 73 did not operate as a full bar to the Commissioners making an assessment after the one year where . .
See AlsoPegasus Birds Ltd v Customs and Excise VDT 22-Oct-1997
The taxpayer asserted that the Commissioner’s assessment to VAT were out of time and had not been made to the inspector’s ‘best judgment’. . .

Cited by:

See AlsoPegasus Birds Ltd v Customs and Excise VDT 7-Jun-2002
The Tribunal was asked whether an assessment to VAT notified to the Respondent Company, Pegasus Birds Limited and contained in a formal notice of assessment was made to best judgment.
Held: It was not. The Respondent’s appeal succeeded. . .
See AlsoCommissioners of H M Customs and Excise v Pegasus Birds Limited ChD 7-Nov-2003
The Commissioners appealed from a decision of the Vat and Duties Tribunal . .
CitedPegasus Birds Ltd v Commissioners of HM Customs and Excise CA 27-Jul-2004
The taxpayer complained that the assessment imposed by the Commissioners was wholly unreasonable, and void. The tribunal had found the assessment wholly unreasonable, but the High Court had allowed the Commissioners’ appeal.
Held: There was no . .
Lists of cited by and citing cases may be incomplete.

VAT, Customs and Excise

Updated: 28 April 2022; Ref: scu.84640