Failure to make fraud claim count

HMRC alleged that taxpayers D and N had taken part in a missing trader intra community fraud.

The department wished to amend its claim regarding N to the effect the taxman alleged the taxpayer had been involved in other negotiations which were used a vehicle for dividing the proceeds of the fraud.

The Revenue did not allege that the arrangements were a sham nor did the department explain who was to share in the proceeds of the fraud or in what shares.

The accused argued that the case against them was inadequate and applied for summary judgment to dismiss the claims.

The High Court said there were two aspects relating to the pleading of fraud. First there had to be an express allegation of fraud although the words “fraud” or “dishonesty” did not have to be used.

Second the defendant was entitled to know...