HMRC loses appeal over £900k tax bill

A director has won a First Tier Tribunal (FTT) appeal against a personal liability notice (PLN) for £900,000 related to VAT transactions HMRC considered to be fraudulent

Kuldip Bachra appealed against a tax demand issued by HMRC on the grounds that she had been involved in transactions related to VAT avoidance.

The PLN issued on 15 December 2017 totalled £1,177,422.96. This was later reduced to £928,551.20 after HMRC withdrew 43 purchases after it found that they did not trace to fraudulent tax losses.

Bachra was the sole director of a liquidated cash and carry business in Birmingham known as OWD Ltd. The company had engaged in more than 300 transactions purchasing goods, which included alcohol.

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