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LONDON TRIBUNAL CENTRE				Reference No: LON/2007/1956

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								Appellant/Applicant

								Respondents

	PROPAGANDA PICTURES LTD	Appellant

	- and -

	THE COMMISSIONERS FOR HER MAJESTY’S REVENUE AND CUSTOMS	 Respondents

	Tribunal: JOHN CLARK (Chairman)

	Sitting in public in London on 12 March 2008

	DIRECTION under Rule 30(8)

THIS APPEAL against a decision of the Respondents with respect to a Misdeclaration Penalty 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 Matthew Hope for the Appellant and Simon Chambers 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:

(1)	the misfeasance by the former director Steven Mitchell is not a reasonable excuse, and accordingly the misdeclaration penalties for periods 02/06 and 05/06 must stand;

(2)	the level of 50 per cent mitigation allowed by the Respondents should not be adjusted

AND THIS TRIBUNAL DIRECTS THAT this appeal is DISMISSED 

JOHN CLARK
	Chairman
	Release Date: 14 March 2008

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