EVERYDAY WHOLESALE LIMITED v Revenue & Customs (VALUE ADDED TAX - input tax deductibility - right to deduct restricted under principles in Kittel)

VALUE ADDED TAX - input tax deductibility - right to deduct restricted under principles in Kittel - absence of documentary and witness evidence - adverse inferences to be drawn - whether purchases of alcohol were connected with fraudulent VAT evasion - whether part of an orchestrated scheme to defraud the Revenue - whether the appellant knew or should have known its transactions connected with fraud - appeal dismissed

For the Respondents: �� Joshua Carey, and Lewis MacDonald, of counsel, instructed by the General Counsel and Solicitor to HM Revenue and Customs

             Everyday Wholesale Limited (�the appellant� or � EDW �) appeals against the respondents� (�HMRC�) decision dated 3 April 2017, which denied the claims of input VAT for the accounting periods 04/13 to 04/16 inclusive on the grounds that the input tax so claimed was incurred in connection with the fraudulent evasion of VAT, and that the appellant either knew or should have known the same.

             The respondents accept that the assessments raised in connection with periods 07/13, 10/13, 07/14, 10/14, and 10/15 are out of time and will be withdrawn.

             The assessments in relation to periods 04/15, 07/15, 10/15, 01/16 and 04/16 remain in dispute with the overall quantum under appeal now stands at �236,896.43.