The Upper Tribunal (Tax Chamber) has handed down its judgment in AC Wholesale v HM Revenue and Customs [2017] UKUT 191 in which Stuart Biggs led Natasha Barnes for HMRC. The Upper Tribunal dismissed the taxpayer’s appeal against the First-tier Tribunal’s finding that it should have known that its transactions were connected with fraud and made important comments about the extent of the evidential burden on HMRC. In particular, it rejected the Appellant’s argument that HMRC was required to eliminate all possible explanations for the transactions other than fraud before finding that the taxpayer should have known that its transactions were connected with fraud. It reiterated that the test for the denial of input tax remained simply whether the taxpayer knew or should have known that its transactions were connected with fraud. The full judgment can be accessed at http://www.bailii.org/uk/cases/UKUT/TCC/2017/191.pdf