The court described the existing practice for a tribunal to look at a challenge to an assessment to VAT which was that the Tribunal should adopt a ‘two stage approach’: ‘ the practice is to consider these cases in two stages: (1) consideration whether the assessment was made according to the ‘best judgment of the Commissioners’; if not, the assessment fails, and stage (2) does not arise; (2) if the assessment survives stage (1), consideration whether the amount of the assessment should be reduced by reference to further evidence or further argument available to the Tribunal . . ‘
Held: The two stage approach was dangerous: ‘There is a risk, however, that the emphasis of the debate before the Tribunal will be distorted. If I am right in my interpretation of Van Boeckel, it is only in a very exceptional case that an assessment will be upset because of a failure by the Commissioners to exercise best judgment. In the normal case the important issue will be the amount of the assessment. The danger of the two-stage approach is that it reverses the emphasis . . ‘ and ‘This case illustrates the dangers of an over-rigid adherence to the two-stage approach. I do not wish to diminish in any way from the importance of guidance given by Woolf J to inspectors as to how to exercise their best judgment when making assessments. However, when the matter comes to the Tribunal, it will be rare that the assessment can justifiably be rejected altogether on the ground of a failure to follow that guidance. The principal concern of the Tribunal should be to ensure that the amount of the assessment is fair, taking into account not only the Commissioners’ judgment but any other points that are raised before them by the appellant.’
Judges:
Woolf J
Citations:
[1998] EWHC Admin 627, [1998] STC 826
Statutes:
Jurisdiction:
England and Wales
Cited by:
Appeal from – Rahman v Commissioners of Customs and Excise CA 20-Dec-2002
The taxpayer appealed aganst rejection of his objection to an assessment to VAT . .
Cited – Pegasus 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
Updated: 28 April 2022; Ref: scu.138748