The fine line between deliberate and careless behaviour
Neil Warren considers the case of Faux Properties (a partnership) (TC7051) where a big property sale was not deliberately omitted from a VAT return.
Faux Properties registered for VAT in order to opt to tax a commercial property in Warrington and claim input tax on the repair costs. It sold the property for £179,000 plus VAT of £33,800 on 20 March 2015, but submitted a nil VAT return for the period ending 30 May 2015, omitting output tax on the sale.
Penalty and assessment
Deliberate or careless
|A deliberate but not concealed inaccuracy occurs when a person gives HMRC a document that they know contains an inaccuracy. It is not necessary to demonstrate that the person knew what the accurate figure was, only that they knew that the figure they put on the document was not accurate.|