Recent missing trader VAT case shows the perils of relying on an agent

HMRC have long relied on the Kittel principle in cases of alleged missing trader fraud in relation to VAT. Using Kittel, HMRC contest that a trader ‘knew or should have known’ that the transactions being entered into were connected to fraudulent activity. Cases going through the courts demonstrate that Kittel has a much lower threshold than proving that a trader deliberately defrauded HMRC, and therefore has more likelihood of success.

Source: Mazars

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