Commentary

V7.318 Fraud—recent cases and current approach of courts

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.318 Fraud—recent cases and current approach of courts

Part V7 Tax planning | Commentary

V7.318 Fraud—recent cases and current approach of courts

The starting point for a tribunal is to consider whether a taxpayer:

'knew or had reasonable grounds to suspect that some or all of the VAT payable in respect of that supply, or on any previous or subsequent supply of those goods, would go unpaid'.

(VATA 1994, s 77A(2))

It is clear that many companies are unaware that the goods they are buying might relate to fraudulent activities. However, this is not the end of the story. As the extract above explains, the consideration is to then consider whether the taxpayer ought to have known

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