Title: Andrew Francis Acquier v Her Majesty's Revenue & Customs [2009] UKVAT v 20980 (20 March 2009)
Author: User1
Last saved by: joe.ury

20980

VAT – default surcharge – reasonable excuse – reliance on another – VATA 1994 s71(1)(b) – appeal dismissed

LONDON TRIBUNAL CENTRE

ANDREW FRANCIS ACQUIER
Appellant

- and –

THE COMMISSIONERS OF HER MAJESTY’S REVENUE & CUSTOMS
(VAT)
Respondents

Tribunal: Malachy Cornwell-Kelly (Chairman)

Sitting in public in London on 25 February 2009

The Appellant in person

Mrs G Orimoloye for the Respondents

© CROWN COPYRIGHT 2009

DECISION

This appeal is against a default surcharge of £989.48 imposed in respect of the period 09/07.

The Appellant is a chartered art and antiques surveyor and practices from an address in Fleet Street, London EC4. Mr Acquier explained the circumstances of the default under appeal as follows: he was due to send the cheque for the tax for the quarter ended 30 September 2007 on 30 October to arrive by the due date of 31 October; but his bookkeeper - who worked for him part-time, but otherwise worked for the firm of architects next door - was suddenly taken ill; the return and the cheque were locked in the bookkeeper’s office in the architect’s practice next door to Mr Acquier’s office, and remained so until the bookkeeper returned on 7 November (although Mr Acquier had expected her back on 5 November). The cheque and the return were dispatched on 7 November, as soon as the bookkeeper’s return made it possible.

In a letter dated 27 October 2008, the bookkeeper wrote to the Appellant subsequent to the surcharge being imposed apologising for “the problem I have caused”.  Mr Acquier said that the bookkeeper was experienced in the work she did for him and would have been aware of the consequence of leaving his quarterly return unattended to and of not alerting Mr Acquier to the need to take action while she was away; she no longer was his bookkeeper.  Mr Acquier did not, in the bookkeeper’s absence, seek any advice from the Commissioners or otherwise seek to deal with the situation.

Mr Acquier has been registered for VAT since 1983 and the schedule of defaults shows eight defaults in timely payment of tax, going back to October 2004.  

Section 71(1) of the Value Added Tax Act 1994 is categorical in providing that:

For the purpose of any provision of sections 59 to 70 [imposing the default surcharge] which refer to a reasonable excuse for any conduct-
(a) …
(b) where reliance is placed on any other person to perform any task, neither the fact of that reliance nor any dilatoriness or inaccuracy on the part of the person relied upon is a reasonable excuse.

I regret that the facts of the appeal fall squarely within this provision and that I have no alternative but to dismiss the appeal.

Malachy Cornwell-Kelly
CHAIRMAN

RELEASED: 20 March 2009

LON/2008/1371