.png)
.png)
It is not often that HMRC is presented with novel investigative powers through new legislation. Instead it is often landmark cases which test both HMRC’s and the court’s understanding of specific principles which vary and expand how existing powers may be used.
An example is the European Court of Justice’s (ECJ’s) ruling in Kittel v Belgium (C-439/04) [2006] STC 1537 which has had a continued impact on how HMRC tackles VAT fraud within supply chains.
In July 2006 when the judgment was released it was already an established principle that a taxable person’s right to deduct input tax will be lost when their transactions relate to VAT fraud carried out by that taxable person. Kittel established a wider application to this principle stating that input tax may also be denied where the person knew or should have known that their transactions were connected with...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
