Tourick (RM) & Company
| Jurisdiction | UK Non-devolved |
| Judgment Date | 10 June 1992 |
| Date | 10 June 1992 |
| Court | Value Added Tax Tribunal |
VAT Tribunal
De-registration - Whether entitlement to be registered after the cessation of the making of taxable supplies - Whether the parties had reached an agreement under Finance Act 1985, Finance Act 1985 section 25sec. 25, when commissioners had withdrawn assessment and penalty - Estoppel - Whether the commissioners could backdate de-registration after having previously cancelled assessments based on the appellant's registration status and de-registered it - Value Added Tax Act 1983, Value Added Tax Act 1983 schedule 1 subsec-or-para 9Sch. 1, para. 9(1); Finance Act 1985, Finance Act 1985 section 25sec. 25.
The issue was whether the commissioners, having withdrawn an assessment upon reaching agreement with the appellant, were entitled to renew their claim for the amount of tax in issue.
The appellant was a partially exempt trader carrying on business as a finance insurance broker and car salesman. On 2 July 1990 he was visited by an officer who formed the view that he was no longer making any taxable supplies and should be de-registered. The appellant disagreed and drew his attention to a recent taxable supply made. Notwithstanding this, the commissioners wrote to the appellant requesting payment of an amount of £1,422 tax refund and a penalty, the latter on the basis that input tax had been reclaimed after the officer's visit.
On 6 December 1990 the officer wrote to the appellant stating that action had been taken to de-register the appellant and maintaining his decision as to the assessment. The appellant then appealed against the commissioners' decision and on 18 January 1991 the commissioners withdrew their assessment with the consequence that the appellant withdrew his appeal.
The commissioners had withdrawn the assessment on the basis that the assessment could not be maintained so long as the trader was still registered and they had inadvertently de-registered him with effect from 1 July 1990. However, on 30 August 1991 they wrote again maintaining their original decision having taken unilateral action to de-register the appellant with effect from 1 January 1989. The appellant then appealed against this decision. He contended that it was unfair that the commissioners should renew their claim for £1,422 after withdrawing the previous assessment, especially as he had then withdrawn his appeal at their request and been deprived of a tribunal decision in his favour which would have barred future demands for that sum...
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