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CRC v Harris, Chancery Division
In October 2008, HMRC served on the taxpayer a bankruptcy petition relating to outstanding VAT and income tax.
The taxpayer said no such debts were due and argued that the Revenue had wrongly withdrawn around £15,000 from a VAT ledger account, which he said should be re-credited to cover the outstanding tax.
The taxman argued that the amount had been used to offset the taxpayer’s liability to landfill tax.
The High Court noted the assessment giving rise to a VAT repayment was dated after the date of the withdrawal, Regardless, the taxpayer continued to have a liability to landfill tax.
This debt stood and the bankruptcy court could not challenge a tax assessment that had not been successfully appealed.
The taxpayer’s appeal was dismissed.
