Uniglaze 2 (East Anglia) Ltd v Revenue and Customs: FTTTx 3 Oct 2012

FTTTx VALUE ADDED TAX – Default Surcharges – insufficiencies of funds – whether the cause of the insufficiencies amounted to a reasonable excuse within section 59(7)(b) VATA and having regard to section 71(1)(a) VATA – Customs and Excise Commissioners v Steptoe [1992] STC 757 considered and applied – the cause of the insufficiencies was cash flow difficulties arising from over-extension of the business, defaulting debtors and a credit squeeze applied by the appellant’s invoice discounters – held in principle this amounted to a reasonable excuse – but in 2 out of the 9 VAT periods in issue the reasonable excuse was exhausted before payments of VAT were made – appeal allowed in part
John Walters QC TJ
[2012] UKFTT 621 (TC)
Bailii

Updated: 23 April 2021; Ref: scu.466239