Commentary

V7.316 Fraud—taking 'reasonable steps' to ensure the 'integrity of the supply chain'

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.316 Fraud—taking 'reasonable steps' to ensure the 'integrity of the supply chain'

Part V7 Tax planning | Commentary

V7.316 Fraud—taking 'reasonable steps' to ensure the 'integrity of the supply chain'

Think of situations where you could purchase goods at genuinely low prices. For example, if an item has been superseded by more up-to-date technology, then it is likely to be sold cheaply because its place in the market has been eroded. Items that are damaged or have suddenly become unfashionable may also be sold cheaply.

In the cases above, the supplier will have a good reason for charging low prices – but equally, the onward supply by his customer will also be at a lower price to reflect the problems with the goods. Contrast this with MTIC frauds, where the goods are bought cheaply and sold at top price.

Points to consider when reviewing

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