This is a very long case about input tax recovery on professional fees and is a taxpayer loss. We are just going to summarise the key points in the decision.
The VAT denied relates to Project Kappa. Project Kappa was the flotation of Gordon Dadds Group Ltd on the Alternative Investment Market and the simultaneous raising of £20 million. The flotation was affected in a reverse takeover in which Work Group plc acquired Gordon Dadds Group Ltd (subsequently named Culver Holdings Ltd (CH)). Work Group (WG) was the entity that incurred the VAT. It joined the CH VAT group on the day of the takeover and sought, via CH as representative member of the VAT group, recovery of the VAT.
Source KPMG
