This was an appeal to the Upper Tribunal. The appellant sold used commercial vehicles to customers registered for VAT in Eire during VAT periods 08/12 to 10/15 and zero-rated their sales. HMRC was not satisfied that the appellant had provided sufficient evidence that goods supplied to its customers in Eire had been removed from the UK, and therefore there was no right to zero-rate those supplies; HMRC, HMRC also assessed for penalty purposes as a for deliberate inaccuracy. The First-tier Tribunal (FTT) found for HMRC. This appeal was only on the grounds that the penalty should not have been for deliberate conduct.
The appellant submitted that a deliberate inaccuracy required a finding that the taxpayer knew that a document contained an error and provided it to HMRC with the intention that HMRC should rely on the documents as accurate.â¯
In short, the FTT made two findings: first, that "CPR cannot have reasonably concluded that they
