Adrel Ltd v Her Majesty's Revenue & Customs

Facts

Adrel Ltd appealed against default surcharges imposed by the Commissioners for Her Majesty's Revenue & Customs in respect of VAT due for the periods 08/05 and 11/05. The company's case, as it emerged from the papers, was that the failures to pay on time were attributable to the actions of an employee who was also a co-director of the company. The appeal came before the tribunal sitting in Edinburgh, but no appearance was made on behalf of the appellant and no further and better particulars had been provided in support of the grounds advanced. The chairman decided to proceed in the appellant's absence, having reviewed all the paperwork produced by HMRC, which indicated that the appellant's director, Mr G Harrowell, appeared to regard the appeal as no more than a delaying tactic. HMRC were represented and moved that the appeal be dismissed on two grounds: that blaming an employee or co-director does not amount to a reasonable excuse for the late payment of VAT, and that the appellant had admitted liability for the VAT due in Part A of the tribunal appeal form. The appeal was accordingly determined on the papers alone.