VDT PENALTY-Conduct involving dishonesty-Appellants proprietors of sports and leisure club-Membership subscriptions paid annually or monthly-Monthly subscriptions entitled members to use of club month by month-Aggregate of monthly subscriptions higher than annual subscription-Difference described as ‘credit charge’-Appellants claimed that difference was exempt-Commissioners ruled that whole of monthly subscription was standard-rated as consideration for monthly membership-Appellants continued to treat difference as exempt in spite of ruling and having taken advice-No appeal against ruling-VAT returns rendered on that basis, and tax at standard rate withheld-Whether conduct dishonest-Appeal dismissed
PENALTY-Conduct involving dishonesty-Mitigation of penalty-Commissioners allowed 65 per cent mitigation-Whether mitigation sufficient-Appeal dismissed
Citations:
[2003] UKVAT V18056
Links:
VAT
Updated: 28 June 2022; Ref: scu.221158