- HMRC argues that the VAT returns filed by the Company were inaccurate due to a claim for a deduction of input tax to which the Company was not entitled, connected to fraudulent loss of VAT
- HMRC contends that the inaccuracies were deliberate and attributable to Mr. Powar, the sole director of the Company
- Mr. Powar argues that he was an unwitting victim of the fraud and was not aware of the extent of fraudulent activities in the wholesale alcohol market
- Mr. Powar claims he took steps to address the issue once he became aware, engaging third parties for due diligence on suppliers
- HMRC bears the burden of proof in establishing inaccuracies in the Company’s VAT returns and the connection 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.
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