Tax and Insolvency Litigation Solicitor

Means of Knowledge Tax Disputes

The European Court of Justice decision in Kittel continues to be the leading case in this field.

Generally, where a taxpayer knew or ought to have known that the transactions in which their business was engaged were connected to fraudulent tax losses then input tax claims can be denied.

It is important to ask your adviser in this area whether they have succeeded before the Courts in appealing decisions of HM Revenue & Customs to deny input tax recovery claims on the basis of means of knowledge.

These cases require knowledge and experience of the indicia that HM Revenue & Customs will rely on in denying taxpayers input tax recovery, including the following –

  • Have there been third party payments?
  • Was stock actually traded and moved?
  • Was the price paid below open market valuations?
  • Is your due diligence adequate?
  • Did you meet your suppliers?
  • How were you confident that your suppliers would pay their own VAT due to HMRC?
  • Did you meet the criteria in VAT Notice 726

For assistance in the area of Means of Knowledge Claims please email or telephone 07460 005 769.

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To further discuss any area of Tax Disputes with an experienced lawyer please contact us or call us on 07460 005 769.

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