Other cases that caught our eye: 17 March 2023

Deliberate behaviour: In CPR Commercials Ltd v HMRC [2023] UKUT 61 (TCC) (7 March 2023) the UT upheld the taxpayer’s appeal against the FTT’s decision that its failure to correctly account for VAT was deliberate. The taxpayer zero-rated its supplies on the basis that they were for export. The FTT accepted HMRC’s argument that the taxpayer did not have appropriate evidence of export to support zero-rating and that it should therefore have accounted for VAT at the standard rate on those supplies. The FTT also upheld HMRC’s imposition of a penalty for deliberate inaccuracy in a document. The taxpayer appealed to the UT which held that in order for an inaccuracy in a document to be deliberate a taxpayer must know that the document contained an inaccuracy at the time that the document is provided to HMRC and that this is a subjective...