Wrong to defer to tribunal

HMRC raised VAT assessments on the taxpayer company on the basis goods the business said had been exported had not left the UK.

The taxpayer sought extra time to appeal but the Revenue presented a winding-up petition in respect of the outstanding amounts. The company applied to have the petition struck out.

The First-tier Tribunal accepted the business’s request for more time while the Companies Court dismissed the petition on the basis the court should defer to the tribunal.

HMRC appealed.

The Court of Appeal noted the tribunal had considered only whether the taxpayer should be granted extra time. It had not ruled on the assessments themselves. The Companies Court judge was right to take the decision into account but he was wrong to consider himself bound by it.

The Companies Court ought to have looked at the evidence. Had it done so it would...