Weight Watchers (UK) Limited v Commissioners for Her Majesty's Revenue and Customs
Decision date: 18 August 2010
Neutral citation: [2010] UKFTT 384 (TC)
Overall AI summary confidence: high
Short overview
This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.
AI confidence in this short overview: high
Weight Watchers (UK) Ltd appealed four VAT assessments issued by HMRC as time-barred under VATA s73(6). The tribunal held that "the assessment" in s73(6)(b) refers to the actual assessments challenged, and that HMRC received evidence (the exact sales figures) shortly before each assessment which, in the officer's opinion, justified making those assessments. The appeals were dismissed.
Ratio decidendi
This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.
AI confidence in this ratio decidendi summary: high
The ratio is that, for s73(6)(b), the relevant moment is when evidence sufficient to justify the particular assessment actually made came to the officer's knowledge; an officer's genuine opinion that newly supplied specific figures justify making the actual assessments satisfies s73(6)(b) unless that opinion is shown to be unreasonable.
Obiter dicta
This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.
AI confidence in this obiter dicta summary: medium
The tribunal noted as obiter that HMRC could be criticised for not pressing for the figures earlier (notably in 2007), but that criticism did not affect statutory construction or the outcome. It also observed that, had the appellant withheld figures, HMRC's likely alternative responses would have been classification as non-compliant and increased supervision rather than automatic recovery of VAT.