News - tax cases

Fair hearing

A taxpayer who owned a dry cleaning business was compulsorily registered for VAT. He was also assessed to a VATA 1994 s 60 penalty. He appealed. The VAT tribunal found for Customs so the taxpayer appealed. The High Court dismissed the appeal so he appealed again. He claimed among other matters that he had been incompetently represented before the tribunal and that the interview should have been conducted under Code C Police and Criminal Evidence Act 1984.
The Court of Appeal said that VAT officers were not charged with the duty of investigating offences they were rather investigating whether a taxpayer's VAT affairs were in order. If the taxpayer's affairs were not compliant the officer could decide whether or not a penalty should be imposed. While the VAT regime was classified as criminal under the European Convention on Human Rights ...