- The FTT dismissed the appeal by Opus Labour Services Ltd against HMRC’s decision to deny input VAT recovery and impose penalties and personal liability notices.
- The case involved the Kittel principle, where the appellants should have known about the connection to VAT fraud.
- Mr. Giller, the company’s sole director, did not actually know of the fraud connection but failed to recognize the implications of the facts.
- The FTT found Mr. Giller’s failure to conduct checks as seriously negligent, given the pattern of trading with fraudulent traders.
- Mr. Giller’s evidence was found to be lacking in substance, particularly regarding due diligence and checks.
- The argument that he was not explicitly told by his accountant or HMRC about necessary checks was deemed insufficient.
Source: claritaxnews.com
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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