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HMRC internal manual

VAT Fraud

Due diligence and risk assessment: Introduction

When looking at the due diligence / risk assessment carried out by the taxable person you should determine and document:

  • what due diligence / risk assessment checks were performed;
  • what the results of the checks indicated;
  • what purpose he believed the checks served;
  • to what extent they were appropriate, adequate and timely in relation to addressing the risks identified; and
  • whether the taxable person took appropriate action in response to the results of the checks (VATF74000).

Examples of the type of due diligence / risk assessment that could be undertaken and what the taxable person should do with the results are discussed in VATF73000 and VATF74000.