Drinks Stop Cash & Carry v HMRC

In Drinks Stop Cash & Carry v HMRC [2016] UKFTT 730 (28 October 2016) the FTT found that due diligence material and transportation documents were statutory records for the purpose of the VAT Regulations 1995 reg 31(1)(a).

This was an appeal against penalties and the issue was whether two categories of documents due diligence material and transportation documents required by HMRC under information notices (FA 2008 Sch 36) constituted statutory records.

The FTT observed that the term ‘business and accounting records’ is widely drafted in reg 31(1)(a). It is entirely within the control of a business whether it keeps such records and it is a question of fact whether a business does in fact keep records. The FTT found that the due diligence and transportation documents if kept by the appellant would be kept for its business purposes (and almost certainly exclusively so) rather than for...