TC09659 - [2025] UKFTT 01211 (TC)

SKM knew or should have known that its transactions with BTL were connected to fraud and therefore the Input Tax Denials were properly made under the Kittel principles.

the Company Penalty is parasitic on the Input Tax Denials and therefore, if the Tribunal found for HMRC in relation to the Input Tax Denials, it follows that the appeals against the Penalty should also be dismissed.

if the Penalty is upheld, the Tribunal should find that the actions of SKM that gave rise to the Penalty are attributable to SF on the basis that SF was the sole director of SKM at all material times and the controlling mind with sole responsibility for running the business and the transactions in dispute.

although the Tribunal had a wide discretion to mitigate the Penalty, there were no grounds to mitigate it here.