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BTL’s business and its dealings with SKM
BTL’s business and its dealings with SKM
BTL was incorporated on 8 July 2020. On 19 August 2020 Lloyd Perrett (“LP”) was appointed as a director, taking over from Paul Mullan. On 14 October 2020 BTL was registered for VAT. It is not clear when BTL commenced trading. BTL’s scrap metal licence is dated 20 April 2021, over 2 months after trades with BTL commenced. BTL was deregistered for VAT on 29 July 2021.
- Heading
- Introduction
- summary
- Issues for determination
- Evidence and submissions
- Officer Borland
- Officer Pathak
- Mr Feldman
- Mr Granger
- Adverse inferences - Mr Perdicou
- Findings of fact
- Background – SK
- Background KG
- Background SKM
- Background SKM – Knowledge of MTIC
- SKM’s Business – control
- SKM’s business
- BTL’s business and its dealings with SKM
- Commencement of trading with SKM
- Invoices
- HMRC’s First Investigation of SKM
- SKM’s approach to Due Diligence
- HMRC’s investigation of BTL
- HMRC’s Second Investigation of SKM
- EU background
- Right to credit for input tax
- Liability to a penalty
- Officer’s Liability
- Mitigation
- Case law Authorities
- Denial of credit for input tax - Kittel
- Mobilx
- Limits of the relevance of due diligence
- Reasonable explanations for circumstances of a transaction
- the parties cases
- The Appellants’ case
- consideration of the issues
- Knowledge of the existence and prevalence of fraud in SKM’s trading sector
- Significant trade with a fraudulent defaulter
- No evidence of commercial negotiations
- Lack of contractual documentation
- Issues with invoices
- Lack of commerciality in the way the transactions were structured
- Insufficient due diligence
- Viability of the goods as described by your supplier. For example
- Examples of specific checks carried out by existing businesses
- Looking at the overall picture
- Conclusions