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Fraudulent transactions

24 January 2012
Issue: 4338 / Categories: Tax cases , VAT
A One Distribution (UK) Ltd v CRC, Upper Tribunal (Tax and Chancery Chamber)

The taxpayer company imported computer components for supply to other UK companies.

In 2006, a missing trader intra community (MTIC) fraud officer from HMRC queried the taxpayer's due diligence procedures. The firm subsequently claimed VAT repayments, which the Revenue refused.

The taxpayer appealed but conceded that the transactions had been connected with the fraudulent evasion of VAT.

The First-tier Tribunal found for the taxman, after deciding the company must have known the transactions were connected with MTIC fraud when it entered into them.

The taxpayer appealed, submitting that the tribunal had reached incorrect conclusions and not based its decisions on the evidence supplied.

The Upper Tribunal (Tax and Chancery Chamber) ruled the First-tier Tribunal had been entitled to reach its decision.

The business's appeal was dismissed.


Issue: 4338 / Categories: Tax cases , VAT
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