Emblaze Mobility Solutions Ltd v Revenue & Customs [2010] UKFTT 410 (TC) (25 August 2010)

Emblaze Mobility Solutions Ltd v Revenue & Customs [2010] UKFTT 410 (TC) (25 August 2010)

The Tribunal found that, on the facts, there was no evidence of circularity of goods or money, and that Global did not know nor should have known that its transactions were connected with fraudulent VAT evasion. The appeal was allowed and the input tax denial was overturned.

Citation
[2010] UKFTT 410 (TC)
Parties
Appellant: Emblaze Mobility Solutions Ltd; Respondents: The Commissioners for Her Majesty’s Revenue and Customs (VAT)
Jurisdiction
United Kingdom
Judgment Date
25 August 2010
Procedural Posture
VAT Appeal (mtic Fraud) / First Tier Tribunal (tax) Final Decision
Outcome
Appeal allowed
Legal Topics
Input Tax Denial, MTIC Fraud, Kittel Principle, Due Diligence, Repayment Claims
Tax Law VAT Law Fraud Input Tax Denial MTIC Fraud Kittel Principle Due Diligence Repayment Claims

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Parties

Emblaze Mobility Solutions Ltd

Appellant

The Commissioners for Her Majesty’s Revenue and Customs (VAT)

Respondents

Procedural Posture

VAT Appeal (mtic Fraud) / First Tier Tribunal (tax) Final Decision

Legal Issues

  1. 1 Whether Global (now Emblaze) knew or should have known its transactions were connected with fraudulent evasion of VAT
  2. 2 Whether HMRC was correct to deny input tax of £8,790,869 for 33 mobile phone transactions in period 03/06

Ratio Decidendi

The Tribunal found that, on the facts, there was no evidence of circularity of goods or money, and that Global did not know nor should have known that its transactions were connected with fraudulent VAT evasion. The appeal was allowed and the input tax denial was overturned.

Court Disposition

Appeal allowed

Orders

  • HMRC's denial of £8,790,869 input tax for period 03/06 is overturned.
  • Assessment for net VAT payable of £345,218.31 is set aside.