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Alternative assessments

28 January 2008
Categories: Tax cases
Westone Wholesale Ltd v CRC, Chancery Division, 26 November 2007

The taxpayer company purchased goods in 2003 from A and apart from one consignment had them delivered directly by A to a transport company for onward delivery to Spain.

The taxpayer claimed input tax on the supplies from A and also wished to zero rate the supplies to the Spanish customer.

HMRC's subsequent investigations found that the goods had not been delivered to the Spanish customer.

For that reason they refused to zero rate the supplies. In 2004 they issued assessments (the alternative assessments) under VATA 1994 s 73(1) in respect of unpaid tax. The taxpayer appealed.

HMRC's investigations continued during 2005 and they discovered that A had gone missing owing VAT. HMRC concluded that the transactions had been fraudulent and that none of goods apart from the one consignment had been bought by or supplied to the taxpayer. They...

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