20414
LONDON TRIBUNAL CENTRE				Reference No: LON/2007/1274

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								Appellant/Applicant

								Respondents

	ZAIRA CATERERS LTD	Appellant
	
	- and -

	THE COMMISSIONERS FOR HER MAJESTY’S REVENUE AND CUSTOMS 	Respondents

	Tribunal:   JUDITH POWELL (Chairman)
                                                           MRS C S de ALBUQUERQUE                

	Sitting in public in London on 10 October 2007 

	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 as amended coming on for hearing this day

AND UPON HEARING Mr R Budge, company secretary for the Appellant and Mr Simon Chambers, Advocate, 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 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 the Appellant had previous, regular, contact with the Respondents. When their payment systems failed they did not contact the Respondents.  Instead, they relied upon an impression gained in a telephone call with their auditors that a payment by cheque after the standard due date was an acceptable alternative which was not correct.  We accept that if the Appellant had contacted the Respondents the Appellant would have been advised to make a CHAPS payment which the Appellant would have had time to arrange even if they had been required to send a letter of authority by courier or hand delivery to their Bank.  We do not find that their erroneous belief that a payment by cheque after the standard due date was a reasonable excuse for the failure to pay by the extended due date available only for electronic payments.

AND THIS TRIBUNAL DIRECTS THAT this appeal is DISMISSED

AND that there is to be no direction as to costs

JUDITH POWELL
Chairman
Release Date: 25 October 2007