Eurosel Ltd v Revenue & Customs [2010] UKFTT 451 (TC) (23 September 2010)

Eurosel Ltd v Revenue & Customs [2010] UKFTT 451 (TC) (23 September 2010)

Eurosel Ltd is not entitled to repayment of input VAT because, on the balance of probabilities, it knew or ought to have known that its transactions were connected with fraudulent evasion of VAT, and no abuse of power or breach of legitimate expectation by HMRC was established.

Citation
[2010] UKFTT 451
Parties
Appellant: Eurosel Ltd; Respondents: The Commissioners for Her Majesty’s Revenue and Customs (VAT)
Jurisdiction
United Kingdom
Judgment Date
23 September 2010
Procedural Posture
VAT Repayment Appeal / Final Judgment
Outcome
Appeal dismissed
Legal Topics
VAT Repayments, MTIC Fraud, Contra Trading, Legitimate Expectation, Abuse of Power
Tax Law European Union Law Administrative Law VAT Repayments MTIC Fraud Contra Trading Legitimate Expectation Abuse of Power

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Parties

Eurosel Ltd

Appellant

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

Respondents

Procedural Posture

VAT Repayment Appeal / Final Judgment

Legal Issues

  1. 1 Whether Eurosel Ltd is entitled to deduct input tax in respect of transactions alleged to be connected with MTIC fraud
  2. 2 Whether Eurosel knew or ought to have known that its transactions were connected with fraudulent evasion of VAT
  3. 3 Whether HMRC’s actions constituted an abuse of power or breached Eurosel’s legitimate expectation

Ratio Decidendi

Eurosel Ltd is not entitled to repayment of input VAT because, on the balance of probabilities, it knew or ought to have known that its transactions were connected with fraudulent evasion of VAT, and no abuse of power or breach of legitimate expectation by HMRC was established.

Court Disposition

Appeal dismissed

Orders

  • Eurosel Ltd’s claim for repayment of £267,850 input VAT is refused
  • No finding of abuse of power or breach of legitimate expectation by HMRC