Lancer Scott Ltd v Revenue and Customs (VAT - when did HMRC have sufficient evidence to issue an assessment) [2024] UKFTT 545 (TC) (17 June 2024)

Lancer Scott Ltd v Revenue and Customs (VAT - when did HMRC have sufficient evidence to issue an assessment) [2024] UKFTT 545 (TC) (17 June 2024)

The Tribunal found that HMRC had sufficient evidence to issue the assessment and penalties, that the Appellant's directors (or persons acting on their behalf) deliberately claimed input tax on false invoices for supplies that were not made, and that the assessment and penalties were valid, in time, and to best judgment. The appeal was dismissed.

Citation
[2024] UKFTT 545
Parties
Appellant: Lancer Scott Limited; Respondents: The Commissioners for Her Majesty's Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
17 June 2024
Procedural Posture
VAT Assessment and Penalty Appeal / First Tier Tribunal (tax Chamber) Final Judgment
Outcome
Appeal dismissed
Legal Topics
Input Tax Deduction, VAT Fraud, Best Judgment Assessment, Deliberate Conduct, Penalty Assessment, Time Limits for Assessment
Tax Law VAT Fraud Input Tax Deduction VAT Fraud Best Judgment Assessment Deliberate Conduct Penalty Assessment +1 more

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Parties

Lancer Scott Limited

Appellant

The Commissioners for Her Majesty's Revenue and Customs

Respondents

Procedural Posture

VAT Assessment and Penalty Appeal / First Tier Tribunal (tax Chamber) Final Judgment

Legal Issues

  1. 1 Whether HMRC had sufficient evidence to issue a VAT assessment against the Appellant for input tax claimed on false invoices
  2. 2 Whether the Appellant acted deliberately or dishonestly in reclaiming input tax on false invoices
  3. 3 Whether the assessment and penalties were valid, in time, and to best judgment

Ratio Decidendi

The Tribunal found that HMRC had sufficient evidence to issue the assessment and penalties, that the Appellant's directors (or persons acting on their behalf) deliberately claimed input tax on false invoices for supplies that were not made, and that the assessment and penalties were valid, in time, and to best judgment. The appeal was dismissed.

Court Disposition

Appeal dismissed

Orders

  • Assessment of £551,695 input tax disallowed upheld
  • Penalties totalling £126,186 upheld