The taxpayer company traded in mobile phones. HMRC refused to allow VAT repayment claims in respect of the monthly accounting period that ended on the 31 March 2006 and the three-month accounting period that ended 30 June 2006.
The taxpayer appealed to the First-tier Tribunal which dismissed the appeal finding there was fraudulent evasion of VAT connected to the relevant transactions.
While there was evidence to suggest one of the shareholders had been a knowing participant in the fraud the tribunal did not consider that the Revenue had satisfied the burden of proof.
The tribunal concluded that the features of the transactions and surrounding circumstances were such that the taxpayer should have known its purchases were connected to fraudulent evasion of VAT.
The taxpayer appealed against this part of the decision.
The Upper Tribunal decided the First-tier Tribunal had considered the evidence thoroughly.
The case for...
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