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Decision remade

17 October 2016
Categories: Tax cases
ETB (2014) Ltd v CRC, Upper Tribunal (Tax and Chancery Chamber), 30 September 2016
Reasonable excuse for late payment of VAT
The taxpayer ETB had been registered for VAT since 1973. It changed to a group registration in 2013 and in more than 20 years of trading had paid £3.5m in VAT without incurring any penalties. T was a director of the company until it was sold in December 2014.
The company failed to pay the VAT due for accounting period 12/14 on time and HMRC imposed a default surcharge under VATA 1994 s 59. The taxpayer claimed it had a reasonable excuse for the late payment because it did not have enough funds. This had been caused by the sale of the business and T’s illness.
The First-tier Tribunal dismissed the appeal and the case proceeded to the Upper Tribunal.

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