However, in his twin ruling after four days of evidence at the TAC, appeals commissioner, Simon Noone has found that Revenue failed to demonstrate that the firm knew or should have known that its transactions with the twelve “missing traders” and four EU customers were connected with VAT fraud “and therefore the assessment should be reduced to zero”.
As part of a 86 page ruling, Mr Noone also found that Revenue breached the firm’s right to defence under EU law in the case and the assessment be also reduced to zero on this issue. He said that the company was entitled to submit its observations on the allegations, and that Revenue was obliged to consider these observations before deciding whether or not to raise an assessment.
He said that in the circumstances, it was difficult to understand the basis on which Revenue contends that the making of the assessment did not adversely affect the rights of the firm.