Gemini Media Group Ltd v Revenue & Customs [2012] UKFTT 538 (TC) (23 August 2012)

Gemini Media Group Ltd v Revenue & Customs [2012] UKFTT 538 (TC) (23 August 2012)

The Tribunal found that the Appellant was not trading independently or commercially, but was interlinked with Grandbyte, which acted in accordance with a pre-planned scheme. The evidence, including the 'diary' entries and financial arrangements, led to the firm conclusion that the Appellant knew its transactions were connected to fraudulent VAT losses. Appeal dismissed.

Citation
[2012] UKFTT 538 (TC)
Parties
Appellant: Gemini Media Group Limited; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
23 August 2012
Procedural Posture
VAT Appeal (mtic) / Final Judgment
Outcome
Appeal dismissed
Legal Topics
MTIC Fraud, VAT Input Tax Recovery, Knowledge of Fraud, Due Diligence, Fraudulent VAT Losses
Tax Law VAT MTIC Fraud VAT Input Tax Recovery Knowledge of Fraud Due Diligence Fraudulent VAT Losses

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Parties

Gemini Media Group Limited

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

VAT Appeal (mtic) / Final Judgment

Legal Issues

  1. 1 Whether the Appellant knew or ought to have known its transactions were connected to fraudulent VAT losses
  2. 2 Whether trading between Grandbyte and the Appellant was genuinely commercial or pre-planned
  3. 3 Significance of 'diary' entries in establishing knowledge of fraud

Ratio Decidendi

The Tribunal found that the Appellant was not trading independently or commercially, but was interlinked with Grandbyte, which acted in accordance with a pre-planned scheme. The evidence, including the 'diary' entries and financial arrangements, led to the firm conclusion that the Appellant knew its transactions were connected to fraudulent VAT losses. Appeal dismissed.

Court Disposition

Appeal dismissed

Orders

  • VAT input tax recovery denied
  • No further relief granted