UK HMRC has published a consultation on the introduction of a new penalty for participating in VAT fraud. The consultation presents two potential penalty options for those that knew or should have known their transactions were connected with VAT fraud based on the knowledge principle:
- Option A - a fixed rate 30% penalty for all cases where the knowledge principle is applied; and
- Option B - an ‘early payment’ system with a lower 25% rate for cases where the knowledge principle is applied, but…