A director was issued with a personal liability notice (PLN) in excess of £1m, on the grounds that they had been personally involved in fraudulent VAT transactions of the business they were sole director of.
PLNs have usually been the preserve of carousel fraud also known as Multi-Trader Inter-Community (MTIC) frauds involving mobile phones or CPUs. This is one of a number of recent cases involving alcohol wholesaling and the avoidance of VAT. These denials of input tax and resultant fine are all based on the Kittel Principle that the business/individual should have known that the transactions would result in the fraudulent under declaration of VAT.
Source Richard Luckin
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