Cell Trading (UK) LTD v Revenue And Customs [2011] UKFTT B1 (TC) (17 January 2011)

Cell Trading (UK) LTD v Revenue And Customs [2011] UKFTT B1 (TC) (17 January 2011)

Cell Trading (UK) LTD is not entitled to repayment of input VAT because it knew or ought to have known that its transactions were connected with fraudulent evasion of VAT, as evidenced by the orchestrated deal chains, lack of commercial rationale, circular money flows, and insufficient due diligence.

Source-derived case information.

Citation
[2011] UKFTT B1
Parties
Appellant: Cell Trading (UK) LTD; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
17 January 2011
Procedural Posture
VAT Input Tax Repayment Appeal / Final Judgment at First Tier Tribunal (tax)
Outcome
Appeal dismissed
Legal Topics
VAT Repayment, MTIC Fraud, Abuse of Rights, Imputed Knowledge, Due Diligence
Tax Law European Union Law Fraud Law VAT Repayment MTIC Fraud Abuse of Rights Imputed Knowledge Due Diligence

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Parties

Cell Trading (UK) LTD

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

VAT Input Tax Repayment Appeal / Final Judgment at First Tier Tribunal (tax)

Legal Issues

  1. 1 Whether Cell Trading (UK) LTD is entitled to repayment of input VAT in respect of 81 transactions in April-July 2006
  2. 2 Whether Cell Trading (UK) LTD knew or ought to have known that its transactions were connected with VAT fraud

Ratio Decidendi

Cell Trading (UK) LTD is not entitled to repayment of input VAT because it knew or ought to have known that its transactions were connected with fraudulent evasion of VAT, as evidenced by the orchestrated deal chains, lack of commercial rationale, circular money flows, and insufficient due diligence.

Court Disposition

Appeal dismissed

Orders

  • Repayment of input VAT in the sum of £6,630,969.77 is refused
  • No order as to costs