NEWS PUBLISHING GROUP Trinity Mirror has successfully appealed against an HMRC penalty for being one day late with a VAT return and payment in 2008.
Trinity Mirror felt the charge was not compliant with EU principle of proportionality and more severe than the gravity of the infringement warranted.
Judge Dr Kameel Khan at the first-tier tax tribunal ruled the surcharge was “disproportionate” and “plainly unfair” after HMRC imposed a £70,900 fine following the late filing and payment, equivalent to 2% of the aggregate value of its defaults.
Khan added there was little evidence to support HMRC’s position that dropping the fine would undermine the whole system, allowing large businesses to “pay their VAT late with immunity”.
As such, the tribunal dismissed the fine.
The current business rates system is over-complex and reform is needed, but reforms should focus first of all on simplifying the appeals process, particularly for businesses which are subject to business rates exemption
The CIoT has called on the government to rethink its approach to ensuring online sellers pay the correct amount of VAT.
Jane Ellison to serve as 'tax minister' following ministerial responsibilities for public health. David Gauke become chief secretary to the Treasury
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