A fair decision

The taxpayer company traded in computer components and mobile telephones. In 2007 HMRC on the basis that the taxpayer was connected with missing trader intra community fraud refused the company’s claims for input tax.

The taxpayer appealed to the VAT tribunal in 2008 but failed to comply with a direction to provide evidence by a certain date. The Revenue successfully applied to have the appeals dismissed on the grounds of inordinate delay. The taxpayer wrote to the VAT tribunal apologising for the delay and saying the company wished to continue with the appeals.

However the taxpayer did not attend the hearing so the application to set aside the decision was dismissed.

As the taxpayer’s accountant had consistently failed to inform the company of the progress of the appeals the directors appointed a new accountant and a fresh application was...