.png)
.png)
07 March 2014
Annova Ltd v CRC, Upper Tribunal (Tax and Chancery Division)
The taxpayer company was established by P in 1999 to trade in consumer electronics.
It made several purchases of mobile phones in 2006 and submitted claims to deduct input tax in respect of the deals.
HMRC refused, saying the transactions were connected with missing trader intra-community (MTIC) fraud about which the taxpayer should have known or had known.
The First-tier Tribunal concluded that the taxpayer was aware that MTIC fraud was a concern and that it should have taken steps to ensure the deals were honest.
The Upper Tribunal agreed with the first tribunal that the taxpayer should have known the transactions were connected with fraud.
The taxpayer’s appeal was dismissed.
