HMRC is to appeal the tribunal verdict in the Livewire case, over whether or not a trader caught up in a carousel fraud chain had 'knowledge or means of knowledge' of the fraud.
The case is the first to test the legal construction that emerged from the Bond House case, which determined that HMRC should pay back VAT to companies where they did not know, or could not have known, about the frauds in the chain.
The Telegraph says today that the taxman is to take the case to the High Court.
Accountancy Age highlighted the case for the first time earlier this year, with hundreds of millions of pounds expected to ride on the outcome.
Further Reading:
Telegraph story: VAT refunds on hold after carousel fraud ruling
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