Jonathan Fisher QC warns of hidden consequences for company directors who lose before the FTT where HMRC successfully alleges dishonesty
Tax advisers should warn clients who are company directors that if they lose a case in the FTT some nasty hidden consequences may be lurking around the corner if HMRC successfully makes an allegation of dishonesty against them.
Mr Nadhan Singh (Potiwal) is a person in point. In July 2008 Mr Singh gave evidence before the VAT & Duties Tribunal on behalf of his company Red 12 Trading Ltd in an appeal against HMRC’s rejection of a claim for repayment of £2.6m input tax. In the usual way HMRC contended that the multiple transactions giving rise to the claim had been contrived for the purposes...
