First-tier Tribunal made no error in law

The taxpayer’s business Zamco Ltd acquired alcohol from suppliers which it sold to customers. The issue in dispute was whether it had acquired alcohol from overseas and brought this alcohol to the UK. If the answer to that question was ‘yes’ a charge to VAT arose for Zamco Ltd. If not no VAT was due. HMRC believed it had and issued assessments and later penalties. The company neither paid the tax and penalties nor did it appeal. HMRC issued the taxpayer a personal liability notice (PLN) on the basis that there were ‘deliberate’ inaccuracies in the VAT returns for the relevant period which were ‘attributable’ to him (FA 2007 Sch 24 para 19(1)).

The taxpayer maintained that Zamco Ltd did not import the goods into the UK. Therefore the VAT assessments and the PLN were wrong in law and should be...