20706
LONDON TRIBUNAL CENTRE				Reference No: LON/2008/530

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								Appellant/Applicant

								Respondents

	DAVID CROOME LIMITED T/A GOLD STAR LOGISTICS	Appellant

	- and -

	THE COMMISSIONERS FOR HER MAJESTY’S REVENUE AND CUSTOMS	 Respondents

	Tribunal:  Nicholas Aleksander (Chairman)

	Sitting in public in London on   21 May  2008

	DIRECTION under Rule 30(8)

THIS APPEAL against a decision of the Respondents with respect to a Default Surcharge 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 Mr D Croome, director of the Appellant and Mrs P Crinnion, Advocate of the Solicitor's Office HM Revenue & Customs 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 the Appellant had insufficient funds to pay the VAT due in respect of the VAT return for the period 11/07 by reason of the delay in receiving repayments of input VAT from tax administrations of various countries in the European Union.  Under section 71(1)(a), Value Added Tax Act 1994, an insufficiency of funds to pay any VAT due is not a reasonable excuse for a default surcharge.  The Tribunal therefore determines that the Appellant did not have a reasonable excuse for the failure to make payment on the due date.

AND THIS TRIBUNAL DIRECTS THAT this appeal is DISMISSED 

Nicholas Aleksander
	Chairman
	Release Date: 6 June 2008

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