Tribunal Upholds VAT Assessments, Reduces Penalties for Careless Conduct with Higher Mitigation

• The Tribunal dismissed the appeal against VAT assessments issued by HMRC for a convenience store business.
• The Tribunal allowed the appeal in part against penalties, reducing them for careless conduct and allowing higher mitigation for quality of disclosure.
• HMRC issued penalties for careless and deliberate conduct in relation to underdeclared VAT.
• The Tribunal found the conduct was careless, not deliberate, and reduced the penalties accordingly.
• The Tribunal declined to suspend the penalties as the Appellants’ VAT registration had been cancelled.

Source: bailii.org

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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