Customs & Excise v Total Network SL [2005] EWHC 1 (QB) (10 January 2005)

Customs & Excise v Total Network SL [2005] EWHC 1 (QB) (10 January 2005)

On the assumed facts, the Claimants have a cause of action in conspiracy by unlawful means against the Defendant. The tort is not limited to harm to trade or business, and fraud, including cheating the public revenue, constitutes unlawful means. The statutory VAT scheme does not preclude a civil claim in conspiracy against a foreign company not subject to UK VAT law.

Citation
[2005] EWHC 1 (QB)
Parties
Claimant: Commissioners of Customs & Excise; Defendant: Total Network SL
Jurisdiction
England and Wales
Judgment Date
10 January 2005
Procedural Posture
Civil / Preliminary Issue Determination
Outcome
preliminary issue determined in favour of the Claimants
Legal Topics
Conspiracy, Unlawful Means Conspiracy, VAT Fraud, Carousel Fraud, Cheating the Public Revenue, Civil Recovery of Fraudulently Obtained Funds
Civil Law Tax Law Tort Law Conspiracy Unlawful Means Conspiracy VAT Fraud Carousel Fraud Cheating the Public Revenue +1 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 18 Party arguments 2 Amounts and remedies 5
Sign in to unlock

Parties

Commissioners of Customs & Excise

Claimant

Total Network SL

Defendant

Procedural Posture

Civil / Preliminary Issue Determination

Legal Issues

  1. 1 Whether the Claimants have a cause of action in conspiracy against the Defendant as pleaded in the consolidated and amended particulars of claim
  2. 2 Whether the tort of conspiracy by unlawful means is available where the unlawful means is the common law offence of cheating the public revenue
  3. 3 Whether such a claim circumvents the statutory scheme for VAT recovery

Ratio Decidendi

On the assumed facts, the Claimants have a cause of action in conspiracy by unlawful means against the Defendant. The tort is not limited to harm to trade or business, and fraud, including cheating the public revenue, constitutes unlawful means. The statutory VAT scheme does not preclude a civil claim in conspiracy against a foreign company not subject to UK VAT law.

Court Disposition

preliminary issue determined in favour of the Claimants

Orders

  • Proceedings may continue against the Defendant on the basis that a cause of action in conspiracy by unlawful means is available as pleaded.