Gary David Donaldson v Commissioners for Her Majesty's Revenue and Customs
Decision date: 27 July 2010
Neutral citation: [2010] UKFTT 319 (TC)
Overall AI summary confidence: high
Short overview
This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.
AI confidence in this short overview: high
This appeal concerned VAT assessments disallowing input tax on fuel purchases where the appellant produced invoices purporting to show VAT-paid purchases from several Northern Ireland suppliers. The tribunal found the invoices were not genuine records of purchases from the named suppliers, that the appellant knew the invoices were false, and dismissed the appeal, upholding the assessments.
Ratio decidendi
This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.
AI confidence in this ratio decidendi summary: high
The tribunal treated the Revenue's supplier checks and invoice inconsistencies as sufficient to cast doubt on the genuineness of claimed VAT invoices; once a valid assessment and such evidence exist, the appellant bears the burden of proving the invoices are genuine, and input tax may be disallowed where that proof is not provided.
Obiter dicta
This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.
AI confidence in this obiter dicta summary: medium
The judgment suggested that repeated use of cheques with the payee left blank can support an adverse inference of dishonest conduct absent a credible explanation, and that hearsay supplier confirmations obtained by Revenue enquiries can be sufficient to raise legitimate doubts about invoice authenticity for assessment purposes.