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Earthshine Ltd v CRC, Upper Tribunal (Tax and Chancery Division)
The taxpayer traded in mobile phones and computer chips. HMRC refused its claim for input tax on the grounds the business had known or should have known the transactions were connected with fraud according to the test established in Kittel v Belgium (C-439/04) [2008] STC 1537).
The First-tier Tribunal agreed with the Revenue and dismissed the taxpayer’s appeal.
The Upper Tribunal said, “It is perfectly clear, imperfections, infelicities and possible errors notwithstanding, why the First-tier Tribunal (FTT) came to the conclusion it did.”
The FTT had examined the evidence in detail and explained why it accepted or rejected each part. It also evaluated the documentary evidence and set out its reasoned conclusions. It was “impossible” to say the FTT had reached irrational or perverse conclusions.
The taxpayer’s appeal was dismissed.
