R E L A T E D C O N T E N T

Victory in Customs tribunal sets precedent

Larry Schlesinger, Accountancy Age 09 Apr 2002

A petrol station's victory in its VAT dispute with Customs & Excise has set an important legal precedent, which could see the government office paying out millions in claims.

In a landmark ruling, the Bedminster South Petrol Station was awarded full legal costs from the date an incorrect VAT ruling was made by Customs.

Previously costs had only been awarded from the date an appeal against a disputed decision was lodged.

Deloitte & Touche VAT partner John Kennedy said: 'In indirect tax disputes it is often only sensible for the tax payer to lodge a formal appeal against a decision after first carrying out a full review of the relevant issues and asking Customs to reconsider their ruling. These reviews can be time consuming and expensive.

'The Tribunal ruling means that companies may now be able to get these costs back.'

He added: 'Customs can expect to pay out millions of pounds as claims start to pour in from organisations seeking to recover the full cost of their fees.'

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