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Mr XYZ (TC5157)
Submission of VAT returns four years after issue of central assessments
The taxpayer failed to submit returns for four quarters. HMRC used its best judgment powers (VATA 1994 s 73(1)) to issue estimated assessments for about £47 500.
The returns were submitted on 29 July 2014. They showed a difference in the return liability and assessments of about £43 000 overpaid.
HMRC refused to repay the difference saying the taxpayer was out of time under s 80(4) and the assessments could not be adjusted.
The taxpayer appealed on the ground of his ill health and said the estimated assessments were ‘unreasonably excessive and punitive’.
The First-tier Tribunal said the language of s 80(4) was ‘clear and unambiguous’. There was no statutory basis which would authorise HMRC to extend the time limit. Further the taxpayer’s illness was not relevant particularly as it appeared from the evidence that he was...
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