An appeal against a dishonest conduct notice by an accountant who created false supplier invoices to reduce a client’s tax liability was dismissed. 
 
The appellant was an accountant. One of his clients (AF) was a self-employed electrical contractor. In 2015, HM Revenue and Customs (HMRC) commenced a compliance check into AF’s self-assessment returns and VAT returns. 
 
Following meetings between the appellant, AF, and HMRC, in September 2015 the appellant admitted that he had tried to help AF by creating false supplier invoices to reduce AF’s VAT liability. HMRC pointed out that what had been done amounted to fraud and ‘HMRC were not going to prosecute but civil penalties would be imposed’. 
 
In September 2016, HMRC issued a conduct notice to the appellant (pursuant to FA 2012, Sch 38, para 4) in relation to his conduct as AF’s tax agent. The