JSL4330 - Establishing whether the JSL measure should be applied: Establishing whether the taxable person 'knew or had reasonable grounds for knowing': Actions or precautions taken

In each case, what actions or precautions did the taxable person take in response to those indicators of risk? This needs to focus on due diligence checks undertaken and, most importantly, the actions taken by the taxable person in response to the results of those checks. In each case, you should consider:

• What due diligence checks were performed? NB: This is not confined to the list of checks set out in Notice 726 Joint and several liability for unpaid VAT. Rather, it includes any checks designed to address the risks.
• To what extent were they appropriate, adequate and timely in relation to addressing the risks identified?
• What did the results of the checks indicate?
• Did the taxable person take appropriate action in response to the results of the checks?