Findings at a glance
- Traceability of the calculation
- Requirements for counter-evidence
- Burden of proof and its reversal
2× exceeded · 1× met
Traceability of the calculationexceeded
HMRC assesses to the best of their judgment. Under the leading authority Van Boeckel, HMRC must act honestly, fairly consider the material before them and reach a decision that is reasonable and not arbitrary — and there must be some material at all. There is expressly NO duty to do the work of the taxpayer.
CitationValue Added Tax Act 1994, s. 73(1) · Van Boeckel v Customs & Excise Commissioners [1981] STC 290
What we provideEvery figure is traceable down to the individual document. The chain of calculation can be walked in both directions — from the result to the document and back.
Requirements for counter-evidenceexceeded
HMRC must first show that the assessment was raised correctly and to the best of their judgment. If it does so, the burden shifts to the taxpayer to show, on the balance of probabilities, that the assessment was incorrect.
CitationVATA 1994 s. 73 · st. Rspr. der Tax Tribunals
What we provideA closed system: purchasing, production, masses, unit counts, sales channel and revenue support one another. A single incorrect figure shows up against the others.
Further information — 1 axes
Burden of proof and its reversalmet
The burden lies first with HMRC as to the propriety of the assessment, then with the taxpayer as to its incorrectness.
CitationVATA 1994 s. 73 · Van Boeckel [1981] STC 290
What we provideThe evidence is prepared so that the reversal of the burden remains traceable and the counter-evidence engages with the calculation, not with the objection.