V5.221 VAT control—introduction

The system of VAT control

V5.221 VAT control—introduction

VAT is largely collected by reference to VAT returns submitted by traders and estimated assessments issued in the absence of such returns1. Experience has shown that a significant proportion of returns and assessments understate the tax properly due to HMRC and a small minority give rise to overstatements of tax2. It is unsurprising, therefore, that substantial manpower effort is devoted to verifying traders' tax liabilities. This is carried out by various means; typically an HMRC officer will contact a trader by telephone or letter in the first instance to discuss the

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