FTT denies recovery of VAT input tax as purchases connected with fraud but decides conduct was not deliberate (Bachra v HMRC)

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• Why it matters
• Case details

Article summary

Tax analysis: In Bachra v HMRC, the First-tier Tribunal (FTT) held that an inaccuracy arising because the taxpayer ‘should have known’ that transactions were connected to VAT fraud was not ‘deliberate’ conduct for the purposes of calculating penalties.