- The FTT partially allowed Sweetmotion Ltd’s appeal against denial of input VAT and related penalties under the Kittel principle.
- The tribunal found the director did not actually know about the VAT fraud but should have known after HMRC’s intervention and education on 19 January 2021.
- Input VAT denial and penalties were limited to transactions after that date, reducing the amounts involved.
- The FTT criticized HMRC for delayed action but held that Sweetmotion should have recognized the fraud after being informed.
- Penalties were mitigated due to the director’s naivety and lack of intent.
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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