Tax tribunal victory
VAT tribunals will now go ahead despite ongoing criminal proceedings.
Customs abandoned last week its attempt to prevent VAT tribunal hearings going ahead when there are outstanding criminal proceedings.
The government agency, which was expected to pursue an appeal, said it would accept the ruling by the chairman of the VAT Tribunal last month that evidence can be presented in civil actions before the start of a criminal trial.
The decision has been widely seen as a landmark judgement. Martyn Bridges, Deloitte & Touche investigation partner, said: ‘Customs’ decision not to appeal allows tax tribunals to determine tax liability, leaving the criminal courts to determine criminal responsibility.’
Customs wanted to hold over a VAT tribunal appeal brought by builder McNicholas Construction Ltd until the new year because several of the company’s employees are due to appear in court next February.
But VAT Tribunal chairman Stephen Oliver ruled last month that the tribunal should go ahead. He said it was experienced in dealing with the evidence and issues relating to VAT matters. He added that making results available could help a judge in a criminal trial.
But the decision was disputed by Customs, which was concerned the evidence presented in the criminal case was similar to evidence considered by the tribunal and would amount to an abuse of process for McNicholas Construction to raise those issues in the VAT tribunal.
