- The Upper Tribunal upheld the FTT’s application of the Kittel principle in Opus Labour Services Ltd v HMRC.
- It confirmed that input tax can be denied where a taxpayer knew or should have known a transaction was connected to VAT fraud, even without actual knowledge.
- The FTT was entitled to find Mr Giller had constructive knowledge based on what a reasonable businessperson should have realized.
- The UT rejected claims that the FTT’s findings were irrational or unsupported by evidence.
- The decision highlights the need for strong due diligence and supply-chain checks to reduce VAT fraud risk.
Source: rpclegal.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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