Bliss Trading Ltd v Revenue & Customs [2011] UKFTT 740 (TC) (15 November 2011)

Bliss Trading Ltd v Revenue & Customs [2011] UKFTT 740 (TC) (15 November 2011)

The Tribunal found that the Appellant’s transactions were connected to fraudulent VAT losses and that the Appellant, through its director Mr. Yarde, had actual knowledge of this connection. The Tribunal did not find Mr. Yarde to be a credible or trustworthy witness, and concluded that the Appellant’s due diligence and explanations were inadequate. The appeal was dismissed as HMRC had satisfied the burden of proof.

Citation
[2011] UKFTT 740
Parties
Appellant: Bliss Trading Limited; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
15 November 2011
Procedural Posture
VAT MTIC Appeal / First Tier Tribunal (tax), Substantive Hearing and Decision
Outcome
Appeal dismissed
Legal Topics
Input Tax Denial, MTIC Fraud, Knowledge Requirement, Due Diligence, Fraudulent VAT Losses
Tax Law VAT Law Input Tax Denial MTIC Fraud Knowledge Requirement Due Diligence Fraudulent VAT Losses

Case Brief

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Parties

Bliss Trading Limited

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

VAT MTIC Appeal / First Tier Tribunal (tax), Substantive Hearing and Decision

Legal Issues

  1. 1 Whether the Appellant's transactions were connected to fraudulent VAT losses
  2. 2 Whether the Appellant knew or ought to have known of the connection to fraud
  3. 3 Whether the evidence of the Appellant’s director was trustworthy

Ratio Decidendi

The Tribunal found that the Appellant’s transactions were connected to fraudulent VAT losses and that the Appellant, through its director Mr. Yarde, had actual knowledge of this connection. The Tribunal did not find Mr. Yarde to be a credible or trustworthy witness, and concluded that the Appellant’s due diligence and explanations were inadequate. The appeal was dismissed as HMRC had satisfied the burden of proof.

Court Disposition

Appeal dismissed

Orders

  • Input tax recovery in respect of the relevant transactions is denied to the Appellant.