Flashpoint Technology Ltd v Revenue & Customs [2011] UKFTT 353 (TC) (01 June 2011)

Flashpoint Technology Ltd v Revenue & Customs [2011] UKFTT 353 (TC) (01 June 2011)

Flashpoint knew or ought to have known that its transactions were connected with fraudulent evasion of VAT, and therefore forfeited the right to deduct input tax under the principles established in Kittel and Mobilx.

Citation
[2011] UKFTT 353
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
Appeal / Final Judgment
Outcome
Appeal dismissed
Legal Topics
VAT Input Tax Deduction, MTIC Fraud, Due Diligence, Knowledge of Fraud, EC Law Principles
Tax Law European Union Law VAT Input Tax Deduction MTIC Fraud Due Diligence Knowledge of Fraud EC Law Principles

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Parties

Flashpoint Technology Ltd

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Appeal / Final Judgment

Legal Issues

  1. 1 Whether Flashpoint's transactions were connected to fraudulent VAT loss
  2. 2 Whether Flashpoint knew or should have known of the connection to fraud

Ratio Decidendi

Flashpoint knew or ought to have known that its transactions were connected with fraudulent evasion of VAT, and therefore forfeited the right to deduct input tax under the principles established in Kittel and Mobilx.

Court Disposition

Appeal dismissed

Orders

  • Flashpoint's claim for input tax deduction is denied
  • No right to repayment of input tax for the disputed transactions