Where there was no real transaction underlying a claim for VAT credit, no VAT credit can be claimed.
Dyson J said: ‘the words ‘to the best of their judgment’ permit the commissioners a margin of discretion in making an assessment; a taxpayer may only challenge the assessment if he can show that the commissioners acted outside the margin of their discretion, by acting in a way that no reasonable body of commissioners could do. In order to succeed, the taxpayer must show that the assessment was wrong in a material respect, and that if so, the mistake is such that the only fair inference is that the commissioners did not apply best judgment’
Judges:
Dyson J
Citations:
[1996] EWHC Admin 111, [2000] STC 553
Links:
Jurisdiction:
England and Wales
Cited by:
Cited – Revenue and Customs v Dempster (T/A Boulevard) ChD 24-Jan-2008
The revenue wished to refuse a claim to set off input tax for two transactions involving the alleged purchase of software. They said the transactions were a sham.
Held: The revenue’s appeal failed.
Briggs J said: ‘the critical question . .
Lists of cited by and citing cases may be incomplete.
VAT
Updated: 25 May 2022; Ref: scu.136659
