Parwinder Singh Gill v The Commissioners for HMRC

Facts

Mr Parwinder Singh Gill left school without qualifications and worked as a ground worker in construction before incorporating PS Gill Construction Ltd in 2008 at the suggestion of his main client, Houlihan & Co (Excavations) Ltd, to concentrate on supplying labour. He was the sole shareholder and, with Mrs Gill, a director, but it was common ground that he alone had day to day control. The Company grew quickly, supplying some 300 workers during the relevant period, and its accountant Mr Gary Foster, engaged about a year after incorporation, prepared and submitted its VAT returns. The Company entered voluntary liquidation on 10 June 2019. HMRC, reviewing Houlihan's records, found that invoices issued by the Company far exceeded the sales declared on its VAT returns; a comparison of the invoices held by Houlihan with those recovered from Mr Foster's office by the liquidator showed that only some had been used to prepare the returns. VAT of £3,477,749 had been under-declared over periods 01/15 to 06/19, averaging around £65,000 per month. On 20 July 2022 HMRC issued the Company with a penalty, and on 26 August 2022 issued Mr Gill with a Personal Liability Notice of £1,825,818.08, later reduced to £1,781,474.60. Mr Gill appealed, disputing only that he had acted deliberately.