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VAT refund withheld

VAT refund withheld

My company recently purchased 75% of a company coming out of administration. We have submitted returns from when we took over control and paid the money due as required. The last two returns should have been repayments to us - however Customs and excise are not paying the money. They claim that two returns, which were during the period that the company was in administration, have not been filed and that no money will be paid until this is rectified.

Are thay allowed to do this? What can I do to recover the money? Currently we will be expecting a further refund of VAT on the next return as well.

Thank you for all answers/advice.
Jim Watson


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By Anonymous
03rd Jul 2002 16:45

purchase of company shares
It is normal when you buy shares in company to make the seller of the shares liable for tax liabilities in the company you are buying arising prior to your ownership, via the warranties in the sale contract and separate tax covenant. This should/may give you rights of recovery against the vendor, depending on the exact terms of the warranties and covenant. Discuss this with the lawyer who dealt with the purchase for you.

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