QN Hotels v Customs & Excise [2003] UKVAT V18273 (18 August 2003)

LONDON TRIBUNAL CENTRE
Reference No: LON/2002/834

	Q N HOTELS LTD	Appellant

	- and -

	THE COMMISSIONERS OF CUSTOMS AND EXCISE	Respondents

	Tribunal: MR MALCOLM J F PALMER (Chairman)

	Sitting in public in London on 15 January and 6 August 2003

	DIRECTION
under Rule 30(8)

THIS APPEAL against a decision of the Respondents with respect to a Default Surcharge of £2,186.16 in respect of the quarter ended 30 May 2002 being a reasonable excuse appeal as defined by rule 2 of the Value Added Tax Tribunals Rules 1986 as amended coming on for hearing this day

AND UPON HEARING Mr Quamor Ahmed, Director, for the Appellant and Mr J Holl and Mr C Palmart 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 representative(s) stating pursuant to Rule 30(8) of the Value Added Tax Tribunals Rules 1986 as amended that they do not require the said decision to be recorded in a written document in accordance with Rule 30(1) of the said Rules

THIS TRIBUNAL FINDS THAT:

1.	It is not satisfied that any failure by the Appellant to pay VAT due on the returns for the quarters ended 28 February and 31 May 2002 was due to any reasonable excuse, but rather, in view of the time elapsed since the original defaults for which the Appellant had a reasonable excuse, due primarily to an insufficiency of funds to pay all past liabilities and new VAT liabilities as they arose

2

2.	It is satisfied that the Appellant by letter dated 24 April 2002, other correspondence and directions attached to cheque payments required all payments on it after 25 April 2002 in excess of £8,000 per week to be applied and appropriated to new VAT liabilities as they arose

AND THIS TRIBUNAL DIRECTS THAT this appeal is ALLOWED to the extent, if any, that payments made in excess of £8,000 per week on or after 25 April 2002 and on or before 30 June 2002 reduce the liability of £109,308.47 shown as due on the return for the quarter ended 30 May 2002.  To that extent no default surcharge is due in respect of the quarter ended 30 May 2002

AND THE TRIBUNAL further directs that either party shall be at liberty to apply for further direction if agreement between them cannot be reached as to the amounts paid between 25 April 2002 and 30 June 2002 in excess of £8,000 per week and appropriated by the Appellant to the liability for the quarter ended 31 May 2002

AND that there is to be no direction as to costs

MALCOLM J F PALMER
	Chairman
	Release Date:

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