E-Tel (UK) Ltd v Revenue & Customs [2014] UKFTT 607 (TC) (19 June 2014)

E-Tel (UK) Ltd v Revenue & Customs [2014] UKFTT 607 (TC) (19 June 2014)

The Tribunal found that all the Appellant’s deals challenged on Kittel grounds were connected to fraudulent VAT losses and that the Appellant knew or ought to have known of the connection. The Tribunal rejected the Appellant’s arguments as unrealistic and unsupported by the evidence, finding that the circumstances, including artificial trading chains, margins, and the Appellant’s poor due diligence, pointed to pre-arrangement and knowledge of fraud.

Citation
[2014] UKFTT 607 (TC)
Parties
Appellant: E-Tel (UK) Ltd; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
19 June 2014
Procedural Posture
VAT Appeal (mtic) / First Tier Tribunal (tax) Substantive Decision
Outcome
Appeal dismissed
Legal Topics
VAT Fraud, MTIC (missing Trader Intra Community) Fraud, Input Tax Denial, Output Tax Assessment, Kittel Principle, Due Diligence, Knowledge or Means of Knowledge of Fraud
Tax Law VAT Fraud MTIC (missing Trader Intra Community) Fraud Input Tax Denial Output Tax Assessment Kittel Principle Due Diligence Knowledge or Means of Knowledge of Fraud

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 2 Authorities cited 2 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

E-Tel (UK) Ltd

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

VAT Appeal (mtic) / First Tier Tribunal (tax) Substantive Decision

Legal Issues

  1. 1 Whether the Appellant’s export deals were connected to fraudulent VAT losses
  2. 2 Whether all VAT losses were fraudulent
  3. 3 Whether the Appellant knew or ought to have known of connections to fraudulent losses

Ratio Decidendi

The Tribunal found that all the Appellant’s deals challenged on Kittel grounds were connected to fraudulent VAT losses and that the Appellant knew or ought to have known of the connection. The Tribunal rejected the Appellant’s arguments as unrealistic and unsupported by the evidence, finding that the circumstances, including artificial trading chains, margins, and the Appellant’s poor due diligence, pointed to pre-arrangement and knowledge of fraud.

Court Disposition

Appeal dismissed

Orders

  • Input tax claims for the relevant periods are denied.
  • Output tax assessments for the relevant periods are upheld.