Taxman to appeal Livewire case
HMRC to appeal in case over 'knowledge or means of knowledge' in carousel fraud chains
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.
Age highlighted the case for the first time earlier this year, with hundreds
of millions of pounds expected to ride on the outcome.