United Kingdom VAT & Duties Tribunals Decisions

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You are here: BAILII >> Databases >> United Kingdom VAT & Duties Tribunals Decisions >> Vinalith Ltd v Revenue & Customs [2008] UKVAT V20696 (30 May 2008)
URL: http://www.bailii.org/uk/cases/UKVAT/2008/V20696.html
Cite as: [2008] UKVAT V20696

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Vinalith Ltd v Revenue & Customs [2008] UKVAT V20696 (30 May 2008)

 


20696

LONDON TRIBUNAL CENTRE Reference No: LON/2008/532

Copy sent to:

Appellant/Applicant

Respondents

VINALITH LIMITED Appellant

- and -

THE COMMISSIONERS FOR HER MAJESTY'S REVENUE AND CUSTOMS Respondents

Tribunal: Nicholas Aleksander (Chairman)

Sitting in public in London on 21 May 2008

DIRECTION under Rule 30(8)

THIS APPEAL against a decision of the Respondents with respect to a Default Surcharge being a reasonable excuse appeal as defined by rule 2 of the Value Added Tax Tribunals Rules 1986 coming on for hearing this day

AND UPON HEARING Mr Q D St-Clair-Pearce, director of the Appellant and Mrs P Crinnion, Advocate of the Solicitor's Office HM Revenue & Customs for the Respondents

AND THIS TRIBUNAL having heard this appeal and having announced its decision and the parties present at the hearing by their said representatives stating pursuant to Rule 30(8) of the Value Added Tax Tribunals Rules 1986 that they do not require the said decision to be recorded in a written document

THIS TRIBUNAL FINDS THAT the Appellant drew down against its invoice discount facility with Bank Leumi on 7 February 2008 (the last date for payment of VAT due for the period 12/07 on the basis that payment was made by CHAPS) and had sufficient funds at 2pm on 7 February 2008 to pay the VAT due for the return, but the funds were paid by Bank Leumi in the bank account of its associated company, Vinalith Print Production Limited. The Appellant was unable to effect a transfer of the funds to Custom's bank account that same day because of the 3pm cut-off time for CHAPS transfers and the limits placed on transfers under the banks procedures. Had the Appellant draw down under its facility with Bank Leumi on the preceding day (as it was able to do), it would have had sufficient time to make the payment so that it arrived in Custom's bank account on 7 February. The Tribunal considers that the Appellant did not have a reasonable excuse for the failure to make payment on the due date.

AND THIS TRIBUNAL DIRECTS THAT this appeal is DISMISSED

Nicholas Aleksander

Chairman

Release Date: 30 May 2008

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