Harwich GSM Ltd v Revenue & Customs [2012] UKFTT 279 (TC) (30 April 2012)

All 74 deal chains were part of an organised MTIC fraud, evidenced by circular money flows, repetitive trading patterns, irrational trading models, and consistent low mark-ups. The appellant knew or ought to have known its transactions were connected to fraudulent VAT evasion. Therefore, input tax deduction must be refused.

Citation: [2012] UKFTT 279
Parties: Appellant: Harwich GSM Ltd; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction: United Kingdom
Judgment Date: 30 April 2012
Procedural Posture: VAT Input Tax Appeal / Final Judgment
Outcome: Appeal dismissed
Legal Topics: VAT Fraud, MTIC Fraud, Input Tax Deduction, Means of Knowledge, Connection to Fraud

Tax Law European Union Law VAT Fraud MTIC Fraud Input Tax Deduction Means of Knowledge Connection to Fraud

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Full judgment text Downloadable case file Legal principles 2 Authorities cited 7 Party arguments 2 Amounts and remedies 4

Parties

Harwich GSM Ltd

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

VAT Input Tax Appeal / Final Judgment

Legal Issues

1 Whether the appellant's transactions were connected to fraudulent VAT evasion
2 Whether the appellant knew or ought to have known of the connection to fraud
3 Whether HMRC's refusal to repay input tax was lawful

Ratio Decidendi

Court Disposition

Appeal dismissed

Orders

HMRC's refusal to repay input tax credits is upheld
Application for disclosure of HMRC policy material refused