Zinc Group Ltd v Revenue & Customs

VALUE ADDED TAX � default surcharge � Section 59 Value Added Tax Act 1994 - whether there was a reasonable excuse for the default � no � whether the penalty was disproportionate to the default � no � appeal dismissed�

This appeal is stated to be against the decisions of the Respondents (�HMRC�) to impose, or confirm the imposition of, surcharges under Section 59 Value Added Tax Act 1994 (�VATA 1994�) for the periods ended 30 November 2013, 28 February 2014 and 30 May 2014.� Those surcharges are in the amounts of �4,902.02, �2,080.18 and �13,265.32, a total of �20,247.52.�

In light of the information provided by Mr Milliken, we were satisfied that both Mr McManus and Mr Milliken were aware that this hearing was due to take place on 13 May 2015.� We concluded that the Appellant had chosen not to be represented by a director or by Mr Milliken.� We therefore decided to proceed with the hearing in the absence of representation for the Appellant.�

As a preliminary point we consider whether the Appellant�s appeal was notified to the Tribunal within time.� Under Section 83G VATA 1994 an appeal to the Tribunal against the imposition of a surcharge under Section 59 VATA 1994 shall be made before the end of 30 days beginning with the date of the decision appealed against.� That decision may be an original decision (i.e. the imposition of a surcharge) or a review decision (i.e. the confirmation of the decision to impose a surcharge).�

In order to establish whether an appeal is brought within time, it is necessary to identify the date of the relevant decision against which the appeal is made.