Crikey! Under our criminal government, even the Serious Fraud Office can be fined for committing… well… tax fraud!
Reposted from AccountingWeb
Blimey! If even the Serious Fraud Office can’t get their VAT returns right, what hope is there for the ordinary trader?
The Serious Fraud Office (SFO) was fined more than half a million pounds for owing HMRC £4m in VAT.
The fraud watchdog used to reclaim VAT on legal fees and some specialist staff.
After a new chief financial officer reviewed its VAT policy, the SFO decided to stop re-claiming VAT on external counsel fees in December 2012.
In 2013, the SFO, which investigates the most serious and complex cases of fraud, bribery and corruption, asked HMRC to confirm how it should account for recovered VAT on outsourced services.
“These discussions, coupled with an HMRC assessment which took place in October 2013, led to the SFO having a liability for reclaimed VAT in previous years… amounting to a total of £4,635k [£4.6m] including a penalty of £564k, interest of £104k, accrued…
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