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Withheld VAT won by trader

Date: 8th September 2008

Her Majesty's Revenue and Customs (HMRC) has made its first payout under its extended verification policy.

Law firm Dass Solicitors has claimed to have won £400,000 in withheld VAT for a trader whose firm was being investigated for fraudulent activity relating to VAT and supply chain.

A court case regarding the alleged fraud was due to take place in Manchester towards the end of July, but HMRC withdrew it two days before.

Dass Solicitors is now claiming the win is the first of its kind in the UK.

Alias Dass of Dass Solicitors said: "We have been successful in the first refusal of a VAT case since March 2006 where HMRC has agreed to repay the monies. We can confirm the VAT has now been repaid to the client and legal costs have been received.

"This is the clearest indication yet these cases are winnable if prepared properly and meticulously."

HMRC is due to contest the case.


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