DDR Distribution Ltd v Revenue & Customs [2014] UKFTT 216 (TC) (21 February 2014)

DDR Distribution Ltd v Revenue & Customs [2014] UKFTT 216 (TC) (21 February 2014)

DDR, through its director Mr Peters, knew or should have known that its transactions were connected to fraudulent evasion of VAT, including via contra-trading, and thus lost the right to deduct input tax under the Kittel principle.

Citation
[2014] UKFTT 216 (TC)
Parties
Appellant: DDR Distribution Ltd; Respondent: Revenue & Customs (HMRC)
Jurisdiction
United Kingdom
Judgment Date
21 February 2014
Procedural Posture
VAT Input Tax Appeal / Final Judgment at First Tier Tribunal (tax Chamber)
Outcome
Appeal dismissed
Legal Topics
VAT Fraud, MTIC Fraud, Contra Trading, Input Tax Deduction, Burden of Proof, Adverse Inference
Tax Law European Union Law VAT Fraud MTIC Fraud Contra Trading Input Tax Deduction Burden of Proof Adverse Inference

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Parties

DDR Distribution Ltd

Appellant

Revenue & Customs (HMRC)

Respondent

Procedural Posture

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

Legal Issues

  1. 1 Whether DDR, through its director Mr Peters, knew or should have known that its transactions were connected to fraudulent evasion of VAT
  2. 2 Whether the right to deduct input tax is lost in cases of contra-trading connected to MTIC fraud

Ratio Decidendi

DDR, through its director Mr Peters, knew or should have known that its transactions were connected to fraudulent evasion of VAT, including via contra-trading, and thus lost the right to deduct input tax under the Kittel principle.

Court Disposition

Appeal dismissed

Orders

  • DDR's claim for recovery of input tax in the sum of £1,013,068.00 is denied