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 and commercially, but was inter-linked with Grandbyte, and that the evidence established the Appellant actually knew its transactions were connected to fraudulent VAT losses. The appeal was dismissed as HMRC had satisfied the burden of proof.

Citation
[2012] UKFTT 538
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) / First Tier Tribunal Decision
Outcome
Appeal dismissed
Legal Topics
VAT Fraud, MTIC Transactions, Input Tax Recovery, Burden of Proof, Knowledge of Fraud
Tax Law VAT Fraud MTIC Transactions Input Tax Recovery Burden of Proof Knowledge of Fraud

Case Brief

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Parties

Gemini Media Group Limited

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

VAT Appeal (mtic) / First Tier Tribunal Decision

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 seized by HMRC

Ratio Decidendi

The Tribunal found that the Appellant was not trading independently and commercially, but was inter-linked with Grandbyte, and that the evidence established the Appellant actually knew its transactions were connected to fraudulent VAT losses. The appeal was dismissed as HMRC had satisfied the burden of proof.

Court Disposition

Appeal dismissed

Orders

  • VAT input tax recovery denied
  • No further relief granted