VATF86100 | What to do if you discover VAT fraud: notifying the taxable person of your decision: decisions made using the Kittel principle

The (This content has been withheld because of exemptions in the Freedom of Information Act 2000) contains wording on the legal basis for the refusal of entitlement to the right to deduct input tax on the grounds that the taxable person ‘knew or should have known’ that he was participating in ‘transactions connected with fraudulent evasion of VAT’ and requires that case specific reasons should be set out.

All such draft letters should be forwarded to the VAT Fraud Team (VAT Serious Non-Compliance & Fraud Team - SNCF) via email for comment prior to issue. On receipt back from the VAT Fraud Team the letter should be issued and a copy saved to the taxable person’s EF.

It is important that the letter is issued as soon as possible after receipt of advice from the VAT SNCF Team.

Once the letter has been issued a copy should be sent to the VAT SNCF Team, located in the HMRC Legal Group (Solicitor’s Office), using the email address (This content has been withheld because of exemptions in the Freedom of Information Act 2000).