Corporate Synergy International (in Liquidation) v Commissioners for Her Majesty's Revenue and Customs

Facts

Corporate Synergy International Limited, then trading in wholesale mobile phones, claimed repayment of input tax of £1,671,801.25 for VAT period 01/06 and £1,859,480.00 for period 02/06. By two decision letters dated 12 December 2006, sent by Officer Mrs J. Gayler to the company's address at Samman House, Hull, HMRC refused the claims because no original evidence had been supplied to support the zero-rating of goods said to have been sold to EC customers. Mr Skelton, the company's sole controlling director, said the letters were never received and that he believed the claims remained under extended verification. HMRC petitioned for winding-up over an unpaid VAT debt of some £6,600, and a winding-up order was made on 30 April 2008. In the ensuing rescission proceedings in the Companies Court, HMRC's solicitor exhibited the December 2006 decision letters, and the rescission application was withdrawn in October 2008; Mr Grant was appointed liquidator in December 2008. Litigation funding was secured in January 2009, but Mr Skelton was reluctant to assist until March 2010. The Notice of Appeal was lodged on 29 March 2010, over three years after the 9 January 2007 deadline, and the company applied for an extension of time, which HMRC opposed.