Ridgeons Bulk Ltd v Commissioners of Customs and Excise
| Jurisdiction | UK Non-devolved |
| Judgment Date | 26 November 1991 |
| Date | 26 November 1991 |
| Court | Value Added Tax Tribunal |
VAT Tribunal
The following cases were referred to in the decision:
Football Association Ltd VAT(1985) VATTR 106; (1985) 2 BVC 205,246
Gleneagles Hotel plc VAT(1986) VATTR 196; (1986) 2 BVC 208,108
Neville Russell (a firm) VAT(1987) VATTR 194; (1987) 3 BVC 611
Silvermere Golf and Equestrian Centre Ltd VAT(1981) VATTR 106; (1981) 1 BVC 1158
Sooner Foods Ltd; C & E Commrs v VAT(1983) 1 BVC 535
Application to strike out statement of case - Assessment for output tax substituted for input tax assessment - Whether new assessment out of time - SI 1986/590 rule 19Value Added Tax Tribunals Rules 1986 (SI 1986/590), r. 19(3).
The issue was whether the commissioners were entitled to withdraw an assessment for input tax and substitute for it an assessment for output tax which would in itself be out of time.
The appellant obtained a lease for buildings and land covenanting to carry out repairs and other works in return for a rent-free period of three years. When the commissioners ascertained that the work in question was supplied by the contractors to the lessor and not the lessee they disallowed the input tax claimed by the appellant. An appeal was lodged against this decision on the ground that the work had been supplied to the appellant who had supplied on the work to the lessor.
The commissioners accepted that the input tax was allowable but concluded that the consideration for the onward supply was the true rental value of a three-year rent-free period and substituted an assessment for output tax on the basis of three twenty-thirds of that amount. In fact, the new assessment was greater than sum originally assessed and the commissioners raised a further assessment to cover the difference. Subsequently the commissioners conceded that the new assessment was out of time.
The appellant, in applying for the commissioners' statement of case to be struck out, contended that the assessment for output tax was an entirely new assessment and was out of time. It was important that a taxpayer should know what his position was, a right which in this case was being abrogated by the action of the commissioners.
Held, dismissing the company's application:
An assessment for a net amount of tax payable normally involved a consideration both of output tax and input tax. The statutory right of the taxpayer to be informed of the ground on which an assessment was raised arose on the filing of the statement of case which should take place within 30 days of the notification to the commissioners of the notice of appeal. The appellant had a ground of complaint, but one which was technical rather than fundamental and which went to the root of the...
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