SC Business Gateway Ltd v The Commissioners for HMRC
Decision date: 13 February 2024
Neutral citation: [2024] UKFTT 140 (TC)
Overall AI summary confidence: medium
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: medium
SC Business Gateway Ltd applied under s.84(3B) VATA for postponement of payment of a VAT assessment for 02/21–01/22 on grounds of hardship. The Tribunal found the appellant's evidence thin and materially inconsistent, holding that the appellant had not discharged the burden of proof that payment or deposit would cause hardship, and dismissed the hardship application; the substantive appeal was not decided. The appellant may apply for permission to appeal within 56 days.
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: medium
The burden of proving hardship under s.84(3B) rests on the appellant and must be discharged on the balance of probabilities. Hardship is assessed by reference to resources "immediately or readily available" at the date of hearing, and claimants must produce up-to-date, probative, contemporaneous financial evidence (eg bank statements, accounts); in the absence of such evidence the Tribunal may place little or no weight on oral assertions of inability to pay.
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 it may properly consider available borrowing facilities or connected assets that are readily accessible, while recognising that sale or use of some assets may itself cause hardship. It also observed that where an appellant's prior actions have caused its inability to pay, that self-inflicted inability can be relevant to the causation enquiry.
Warning
This chunk contains duplicated and formatted text fragments and repeated passages; factual content extracted where clear. notes contain duplicated passages and are materially limited to a single chunk; none of the substantive appeal was decided.