FTT rules on the Application of VAT Penalties in alleged Contra Trading case

The FTT (Judge Blewitt) has given judgment against the taxpayer in an application for summary judgment against a penalty sought to be imposed by HMRC on a director of a company allegedly engaged in contra trading. Rory Mullan and Harriet Brown of Tax Chambers, 15 Old Square representing the taxpayer had argued that the imposition of a penalty would breach the prohibition on retrospective penalisation and that as a matter of EU law a conforming interpretation could not be used to impose a penalty.

Butt v HMRC (FTT summary judgment decision)