- Elbrook (Cash & Carry) Ltd is appealing against two assessments by HMRC to deny deduction of VAT input tax on transactions connected with fraud
- HMRC claims that Elbrook knew or should have known that the transactions were connected to fraudulent evasion of VAT
- The transactions involved the purchase of soft drinks in VAT periods ending 04/12 to 07/14
- HMRC identified three suppliers to Elbrook engaged in the orchestrated scheme to evade tax
- Elbrook agrees there was a loss of VAT in 334 of the 335 transactions, but disputes one transaction involving Sparrowhawk Ltd
- Elbrook denies that the transactions with DZ Distribution Ltd were part of a scheme to defraud HMRC
- Elbrook argues that they neither knew nor should have known that the transactions were connected to fraudulent evasion of VAT.
Source: bailii.org
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
