In Impact Contracting Solutions Ltd, the Upper Tribunal determined that the Ablessio principle empowers HMRC to deregister a taxpayer from the VAT system if they are using their VAT registration number solely or principally to facilitate fraud or abuse of the VAT system, if they know or had the means of knowing of such fraud. It also confirmed that deregistration on the abuse basis fell outside the scope of reasons to deregister in VATA 1994 Sch 1 because those provisions were only directed towards issues of registration arising under the Act itself. HMRC’s power to deregister taxpayers under the Ablessio abuse basis appears to be a wide power with no real defined limits; however, the issue of proportionality will doubtless be a matter for the FTT to consider in due course.
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
In Impact Contracting Solutions Ltd, the Upper Tribunal determined that the Ablessio principle empowers HMRC to deregister a taxpayer from the VAT system if they are using their VAT registration number solely or principally to facilitate fraud or abuse of the VAT system, if they know or had the means of knowing of such fraud. It also confirmed that deregistration on the abuse basis fell outside the scope of reasons to deregister in VATA 1994 Sch 1 because those provisions were only directed towards issues of registration arising under the Act itself. HMRC’s power to deregister taxpayers under the Ablessio abuse basis appears to be a wide power with no real defined limits; however, the issue of proportionality will doubtless be a matter for the FTT to consider in due course.
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
