Raptor Commerce Limited v Commissioners for Her Majesty's Revenue and Customs
Decision date: 14 July 2010
Neutral citation: [2010] UKFTT 335 (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
Raptor sought a VAT repayment supplement after HMRC delayed payment of its 02/06 repayment; HMRC said periods during which it was making or answering enquiries could be excluded from the 30-day repayment-supplement clock. The Tribunal held that an "inquiry" for these purposes requires questions put to the taxpayer (not merely internal investigation), found HMRC had properly excluded 11–21 April 2006, but that the net period still exceeded 30 days so the repayment supplement was payable. The appeal was allowed.
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
For repayment-supplement calculations an "inquiry" means the raising of question(s) to the taxpayer (selection for verification or internal investigation alone is not enough). The excluded period begins when the taxpayer is first contacted or otherwise intimated of the enquiry and ends when HMRC have received a complete answer or have determined not to pursue the matter.
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 observed that departments should keep contemporaneous records (emails/notes) of specific inquiries and communications relied on to stop the clock, and that a later internal authorisation to pay does not by itself show HMRC have satisfied themselves that an enquiry has been answered or will not be pursued.