In Miss S Walker v HMRC (TC01919 – 12 April) a woman (W) registered for VAT and submitted a return claiming a repayment of £60 038. When HMRC queried the claim W stated that she had purchased an aeroplane a car and a piano. However she failed to produce any invoices in support of her claim. HMRC formed the opinion that the claim was fictitious and imposed a penalty under VATA 1994 s 60. The First-tier Tribunal dismissed W’s appeal finding that ‘the purchases never occurred’ and that the repayment claim was dishonest. (The Tribunal awarded costs to HMRC.)
Why it matters: The First-tier Tribunal upheld HMRC’s view that the appellant had made a fictitious repayment claim and upheld the penalty which HMRC had imposed under VATA 1994 s 60. The Tribunal also awarded costs to...
