18645

Default Surcharge – Failure to ensure payment by electronic transfer was transmitted or received timeously – previous knowledge of time required – appeal refused.

EDINBURGH TRIBUNAL CENTRE

	JEAN MARGARET ADKIN	Appellant

	- and -

	THE COMMISSIONERS OF CUSTOMS AND EXCISE	       Respondents

			Tribunal:	 (Chairman):  T Gordon Coutts, QC

Sitting in Aberdeen on Tuesday 1 June 2004

for the Appellant		HEARD ON PAPERS ONLY

for the Respondents	Mr A McCue

© CROWN COPYRIGHT 2004.

DECISION

The Tribunal heard this appeal on papers only.  The papers submitted by the Appellant indicated that she went to the bank on the last day to pay but they told her that they stopped accepting electronic payments after 2pm she continues this I was unaware of – hence payment would have been one day late.  In her letter to the Tribunal she stated that “I completed the return on the last of the extra days but the bank had stopped taking payment and the payment was one day late”.

That narration appeared to be sympathetic.

However from the documents produced by the Respondents it appeared that the Appellant was in the first place on 3 July 2003 aware that a bank needed 3 days to effect the transfer. 

Further on 7 January 2004 the Appellant required to be informed of the Respondents bank details.  She stated that the deadline had passed and that she was advised of a 15% surcharge.  Other documents indicated that the Appellant was aware of the CHAPS system; that appeared as a result of an enquiry on 6 July 2001.  

In the light of that state of the documents and the evidence contained therein, the Tribunal is unable to find any reasonable excuse for non-payment timeously.  If traders are to take advantage of the CHAPS payment system they do require to ensure that they allow sufficient time for the payment to be received by the Respondent.  Attempting to deal with an electronic transfer on the last day of days of grace will not suffice.

As a result of her appeal however and a review of her circumstances the amount of the surcharge was reduced from 15-10% i.e. from £247.66 to £165.10.

The appeal is refused and the Appellant will require to make payment of the sum of £165.10 by way of Default Surcharge.

T GORDON COUTTS, QC

CHAIRMAN

RELEASE:  7 JUNE 2004

EDN/04/13