A HAULIER in Rossendale has been left with a £112,000 VAT bill - and ‘facing bankruptcy’ - after losing a 16-year-old battle with the taxman.

Alex Thompson’s Bacup-based company agreed to transport 1,200 cases of whisky from a warehouse in Renfrew, Scotland, operated by a firm called Houston, a tax tribunal heard.

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The whisky was delivered to an Airdrie address and was supposed to be flown out to Belgium. But agents in Antwerp confirmed the load never arrived, the tribunal heard.

Questioned by Customs and Excise officers after the delivery, Mr Thompson said he did not realise the significance of ‘bonded warehouses’, used to store imported goods until duty is paid.

He told officers his delivery driver, Stuart Reid picked up the whisky after he received an order from a regular customer, called only ‘Steve’.

Mr Thompson, who ran A J Thompson Ltd from 1993 to 1998, had no forwarding address for ‘Steve’ but would meet him in motorway services, to receive payments by cash or cheque for jobs.

An assessment of £112,665 was made by HM Revenue and Customs on the whisky and served on Mr Thompson.

Tribunal judge Jonathan Cannan said: “If Mr Thompson is found liable for the excise duty then this could result in his bankruptcy.

“He had an accident at the beginning of November 2014 and his wagon was written off. At the time of the hearing he was 67 years of age and still working as an agency driver.”

Customs representatives argued Mr Thompson was liable as the goods had been dispatched from the warehouse to his driver, Mr Reid, and then transported to a ‘excise duty point’ Ruling against a duty appeal by Mr Thompson, Judge Cannan said: “We do not consider that any ignorance on the part of Mr Thompson as to the law surrounding excise duty movements assists his case.”