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ERF Ltd v CRC, Upper Tribunal (Tax and Chancery Chamber)
The taxpayer company discovered its financial controller had manipulated accounts to create underpayments of VAT. The arrears amounted to approximately £13.8m.
HMRC raised an assessment and imposed a civil evasion penalty under VATA 1994, s 76, against which the taxpayer appealed.
The First-tier Tribunal found that the penalty was appropriate, but reduced it by a small amount, saying no further reduction was due because the case had involved fraud.
The company appealed.
The Upper Tribunal concluded that the First-tier Tribunal’s ruling had been correct; there were no grounds for interfering with the decision.
The taxpayer company’s appeal was dismissed.
