(1) The Principal Act is amended by inserting the following after section 108B, which is inserted by section 68:

"108C. Joint and several liability for tax

(1) In this section -

'first accountable person' means the person who, in relation to any taxable supply of goods or services or intra-Community acquisition of goods chargeable to tax in accordance with section 3(a), (c), (d) or (e) is, apart from this section, liable to pay the tax chargeable in accordance with Chapter 3 of Part 9;

'second accountable person' means a person, other than the first accountable person, who participates as a purchaser or as a supplier in a series of taxable supplies;

'series of taxable supplies' means a supply of taxable goods or services made or received by an accountable person and any previous or subsequent supply of those taxable goods or services made or received by other accountable persons and includes intra-Community acquisitions of goods.

(2) Where, in relation to a particular series of taxable supplies -

(a) at the time a supply or intra-Community acquisition (forming part of that series) was made, the second accountable person knows that, or is reckless as to whether or not, that supply of goods or services or intra-Community acquisition is connected to the fraudulent evasion of tax, and