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Megtian Ltd (in administration) v CRC, Chancery Division
The taxpayer had claimed refunds of input tax for two one-month accounting periods.
HMRC refused the claims, which amounted to around £5.9 million, on the basis that the taxpayer was connected with the fraudulent evasion of VAT, of which the firm should have been aware.
The tribunal dismissed the taxpayer’s appeal, so the business appealed to the High Court and argued that the tribunal’s decision had erred in law because it had not identified the fraud with which the taxpayer was allegedly involved.
The court found the tribunal’s findings of fact accorded with the evidence and that it had not erred in law.
The taxpayer’s appeal was dismissed.
