Hardship not established

The taxpayer company appealed in May 2009 against VAT assessments for 2006 and 2008 on the ground of hardship in each case.

The First-tier Tribunal (FTT) refused the applications because the business did not provide sufficient evidence to prove it would suffer hardship if it had to pay the tax.

The company applied for judicial review saying the lack of right of appeal against the First-tier Tribunal decision was unfair. VATA 1994 s 84(3C) provided that a tribunal’s decision on hardship would be final.

The Queen’s Bench Division dismissed the application in March 2011. The Court of Appeal found in October 2012 that s 84(3C) was unlawful ruling that the taxpayer could appeal against the FTT decision.

The Upper Tribunal said the company had been given ample opportunity to demonstrate hardship at the time of its initial claim but had failed to do so. The...