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	United Kingdom VAT & Duties Tribunals Decisions
You are here: BAILII >> Databases >> United Kingdom VAT & Duties Tribunals Decisions >> Construction Solutions (Southern) Ltd v Revenue & Customs [2009] UKVAT V20955 (16 February 2009) URL: http://www.bailii.org/uk/cases/UKVAT/2009/V20955.html Cite as: [2009] UKVAT V20955

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20955

SECURITY – company with same director and secretary liquidated with debt to HMRC – whether reasonable to require security – yes – appeal dismissed

LONDON TRIBUNAL CENTRE

CONSTRUCTION SOLUTIONS (SOUTHERN) LIMITED Appellant

- and -

THE COMMISSIONERS FOR HER MAJESTY'S

REVENUE AND CUSTOMS Respondents

Tribunal: DR JOHN F AVERY JONES CBE (Chairman)

Sitting in public in London on 3 February 2009

The Appellant was not represented

Gloria Orimaloye, officer of HMRC, for the Respondents

© CROWN COPYRIGHT 2009


 


DECISION

1. Construction Solutions (Southern) Limited appeals against Notice of Requirement to give security dated 24 December 2007 for £14,300 (or £9,500 if the Appellant makes monthly returns). The Appellant was not represented; HMRC were represented by Miss Gloria Orimaloye.
2. I head evidence from officer Paul Johnstone who made the decision to demand security. I find the following facts:

(1) Roofing Solutions (London) Limited whose director was Mr Kenneth Smith and company secretary Mrs Sally Smith went into liquidation on 21 November 2007 owing HMRC £294,437.61 (comprising an officer's assessment for £266,722.59, a computer generated assessment for £3,670, the balance being penalties). The officer's assessment was made in the absence of supporting evidence of zero-rating. The company contended that the records had been stolen from a car. HMRC gave them time to reconstruct the records but they failed to do so.

(2) The Appellant was registered for VAT on 1 June 207. Its directors are Mr Kenneth Smith and Mrs Sally Smith, the latter also being company secretary. No VAT returns have been made by the Appellant.

(3) The amount of security was based on the last four returns by Roofing Solutions (London) Limited.

3. The Appellant's notice of appeal contends that it is unjust to make them pay a large amount as security.
4. HMRC contend that in view of the unpaid debt from Roofing Solutions (London) Limited the Appellant represents a risk to future revenue.
5. The jurisdiction of the Tribunal is to consider whether the decision to require security was reasonable. Bearing in mind the large debt due from a company with the same director and company secretary and the lack of returns from the Appellant it seems to me that the decision was entirely reasonable. The amount of security is calculated on the usual basis of six months' tax (or four months if monthly returns are rendered).
6. Accordingly I dismiss the appeal.

JOHN F AVERY JONES

CHAIRMAN

RELEASE DATE: 16 February 2009

LON/08/0424