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17 March 2009
Issue: 4198 / Categories: Tax cases , VAT
CRC v Livewire Telecom Ltd; CRC v Olympia Technology Ltd, Chancery Division, 16 January 2009

Two joint appeals concerned missing trader intra-community fraud.

In essence HMRC refused to repay the ultimate exporters’ input tax because they were caught up in a carousel fraud.

The VAT tribunal had held that neither company knowingly took part in the fraud and the only fraud which took place had been committed by the missing traders.

It said that the only way that HMRC could refuse repayment would be if they could prove that the companies knew about the fraud.

HMRC appealed on the basis that the companies should have known about the fraud.

The High Court said that with regard to Olympia Technology it was too high a legal test for HMRC to have to show that the company should know of both the missing trader’s fraud and the contra-trader’s involvement in that fraud. The tribunal would have to reconsider this appeal.

However with regard...

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