- In the FTT case of Eurolaser IT Ltd, the tribunal assessed whether the agent knew or should have known of fraud in the supply chain and attributed this knowledge to the Appellant.
- The tribunal found that the Appellant did not take reasonable steps to prevent fraud, leading to the refusal of the appeal.
- Typically, each party bears its own costs in FTT cases, but the Appellant did not opt out of the costs protection regime, resulting in an order to pay HMRC’s costs.
- The Tribunal Procedure Rules allow cost orders if a party acts unreasonably or if the case is classified as Complex and the Appellant does not request exclusion from cost liability.
- Complex cases involve lengthy or complex evidence, lengthy hearings, important principles, or large amounts of tax or penalties.
- Costs can also be awarded if an appeal is brought unreasonably, meaning it is vexatious or frivolous.
Source: marcusward.co
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.
