Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Carousel fraud

08 March 2010
Issue: 4246 / Categories: Tax cases , VAT
Life Enterprises Ltd (TC281)

The taxpayer company appealed against decisions by HMRC refusing to refund input tax of over £2.4 million it had claimed in connection with intra-community supplies and exports of mobile phones.

HMRC claimed that each transaction involved fraud and that the taxpayer company should have known this was the case.

The tribunal concluded that both companies supplying the taxpayer company were involved in ‘dirty’ chains which led to a loss of VAT in the UK.

The deals made by the taxpayer company could only have been financed through fraud involving the suppliers and the taxpayer either must or should have known that this was so.

The taxpayer was benefiting from fraud.

The taxpayer company’s appeal was dismissed.

Issue: 4246 / Categories: Tax cases , VAT
back to top icon