Fabian Barth discusses how the lower threshold that applies for involvement in VAT fraud, recently consolidated in Impact Contracting Solutions, can put even honest traders at risk of suffering severe financial consequences.
Under English law, one does not normally become a participant in a fraud without acting dishonestly. It may therefore come as a surprise to businesses that, with regard to VAT fraud, they may (for some purposes) be treated as an accessory on the mere basis that they ‘should have known’ better.
It is hence prudent for traders to develop awareness; how does one become an accessory in a VAT fraud? What are the potential consequences?
How does one become a participant in fraud under domestic law?
Under domestic law, a person is usually held responsible for participation in a fraud only if some dishonest conduct on their
