Flashpoint Technology Ltd v Revenue & Customs [2011] UKFTT 353 (TC) (01 June 2011)
Flashpoint knew, through its directors, that its transactions were connected with fraudulent VAT evasion. Its trading practices, lack of due diligence, and features of the transactions demonstrated knowledge of fraud. Therefore, it forfeited the right to deduct input tax under the principles established in Kittel and Mobilx.
- Citation
- [2011] UKFTT 353 (TC)
- Parties
- Appellant: Flashpoint Technology Ltd; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
- Jurisdiction
- United Kingdom
- Judgment Date
- 01 June 2011
- Procedural Posture
- VAT Input Tax Appeal / Final Judgment
- Outcome
- Appeal dismissed
- Legal Topics
- Input Tax Deduction, MTIC Fraud, Due Diligence, Knowledge of Fraud, EC Law Principles
Case Brief
Summary, issues, holding and outcome
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Parties
Flashpoint Technology Ltd
Appellant
The Commissioners for Her Majesty’s Revenue and Customs
Respondents
Procedural Posture
VAT Input Tax Appeal / Final Judgment
Legal Issues
- 1 Were Flashpoint’s transactions connected to fraudulent VAT losses?
- 2 Did Flashpoint know or should it have known of the connection to fraud?
Ratio Decidendi
Flashpoint knew, through its directors, that its transactions were connected with fraudulent VAT evasion. Its trading practices, lack of due diligence, and features of the transactions demonstrated knowledge of fraud. Therefore, it forfeited the right to deduct input tax under the principles established in Kittel and Mobilx.
Court Disposition
Appeal dismissed
Orders
- Input tax deduction claim denied
- No repayment of input tax to Flashpoint
Full Case Text
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