The FTT has reduced penalties issued by HMRC, finding that an inaccuracy was careless behaviour rather than deliberate.
The taxpayer, a garage that sold vehicles, appealed against the penalties for deliberate behaviour imposed by HMRC.
The taxpayer had previously made the same type of error in reporting, relating to ‘bumping’, where the value of part exchange vehicles is inflated on the documentation entered in to with finance companies, had not fixed its record systems, and had not initially advised there was any issue at the VAT inspection.
Source Smith and Williamson
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