This case concerns VAT, and in particular whether the appellant should be permitted to prosecute its appeal without having to pay the VAT in question to HMRC under section 84 Value Added Tax Act 1994 (“VATA”). An appeal can be entertained if the respondents (or “HMRC”) are satisfied that the requirement to pay or deposit the amount of VAT would cause the appellant to suffer hardship. If HMRC are not so satisfied, then an appellant may apply to the tribunal, and if the tribunal is satisfied that the appellant would suffer hardship, the tribunal may allow the appeal to proceed.In this case, that is exactly what has happened. The appellant (or “ABA”) claims that it is unable to pay or deposit the VAT of £110,310 with HMRC and had applied to HMRC for hardship. This was denied, and accordingly the appellant made an application to the tribunal. The question which I must decide, based on the evidence before me on the day of the hearing, is whether ABA would suffer hardship if it was required to deposit the VAT. For the reasons given below, I have decided that it would. I therefore allow the application.
Source: bailii.org
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