Not specific

A succession of companies were registered for VAT but HMRC concluded that these were shams and that the business was in fact being run by four members of a family in partnership.

The department registered the partnership for VAT and assessed them to VAT and penalties covering seven years.

The taxpayers appealed. The VAT tribunal refused the appeal against the registration and this was accepted by the taxpayers.

Another differently constituted VAT tribunal heard the appeal against the assessments and decided in favour of the taxpayers.

HMRC appealed.

The Court of Session ruled that as neither the VAT assessment nor penalty assessment related to any prescribed accounting period in respect of which the respondents had to make a return they were invalid.

The taxpayers were required to make quarterly returns and had to be assessed accordingly.

If HMRC considered a single return for the entire period was necessary...