VAT Tribunal Decisions

Records with Revenue

The taxpayer and his wife took over the running of a public house in 1996. In their first year of ownership they attracted considerable business but in 1998 trade reduced and the taxpayer had to take an additional job to earn money to help run the business. He also took out a loan to pay off tax debts.

Customs issued default surcharges on the taxpayer in respect of the four quarters to December 1999 against which he appealed. He acknowledged that defaults had occurred but said that he had insufficient funds to pay them. Customs and the tribunal were sympathetic but said that the law was categorical in saying that insufficiency of funds was not a reasonable excuse. However with regard to the quarter to June 1999 the surcharge was reduced to ten per cent. This was because the...