Wong (t/a  Four Seasons) v Customs and Excise [2004] UKVAT V18931 (27 January 2005)

18931

VAT – HARDSHIP –leave to appeal without payment or deposit of tax -  business closed down - premises retained subject to large mortgage - premises let to fund mortgage – appellant working part time – no other assets - appeal allowed

LONDON TRIBUNAL CENTRE			

	BEN WONG	Appellant
				T/A The Four Seasons

	- and -

	THE COMMISSIONERS OF CUSTOMS AND EXCISE	Respondents

Tribunal:	D S PORTER	  (Chairman)

Sitting in Birmingham on 3 November 2004

The Appellant in person

No one for appearing the Respondents

© CROWN COPYRIGHT 2005

DECISION

1.	This is an appeal by Ben Wong (the Appellant) against a requirement by the Commissioners that he should pay or deposit the sum of £14,731 raised by their assessment contained in a letter date 29 June 2004. The Appellant appeals on the basis that such a payment would cause him hardship. The Commissioners are not satisfied that he would suffer hardship and by a notice dated 21 July 2004 opposed this application.

2.	I heard evidence from Mr Wong and as no one appeared for the Commissioners and no indication was given for their non-attendance, I determined to proceed under rule 26(2) of the Value Added Tax Rules 1986 (as amended).

3.	The Appellant explained that he had had to close down his take away business as it was making insufficient money to be viable. He owns the premises at 49 Miller Way St Martins Gardens Exminster EX6 8TH, which is valued at £74,000. He has purchased the property with the help of a mortgage of £50,000.

4.	He had not sold the property but had decided to let it and is receiving a rental income of £200 per week. This assists with the repayment of the mortgage. He has also taken a part time job, for which he receives a further £90 per week, which helps to maintain him and his wife.

5.	He produced his bank statement number 10386006, which showed that he only has £58 in the account. He also produced his Nationwide Building Society account, which only has £66 in it.  He says that he has no other assets.

Decision.

6.	I am satisfied from the evidence that I have heard that there is no prospect of the Appellant raising sufficient funds to make the necessary payment or deposit of the Value Added Tax. The Appellant also advised me that he had written to the Commissioners and they were fully aware of the position. I therefore find that there would be considerable hardship if the Appellant had to pay or deposit the tax and I allow the appeal.

7.	The costs of this appeal shall be decided at the substantive appeal  

D S PORTER
CHAIRMAN
Release Date: 27 January 2005

LON/04/1091