Genuine supplier question

The curious case of Smart Organiser Limited (TC07815) seems to create more doubt than clarity. The case relates to input tax claims for supplies of construction staff purchased by the appellant to assist them in provision of construction services.

The VAT had been charged by three companies that had been set up to rationalise obtaining sub-contract staff. The decision appears not to tell us whether the supplier companies were controlled by the appellant (or a common owner), although it is loosely implied that they were ‘set up’ by the appellant.

There is no reference to whether the three companies had failed to pay the corresponding output tax, or any reference to the attempt to use the VAT system for any unreasonable advantage. So, we are not informed as to the true mischief that was thought to have been committed.