Intekx Ltd v Revenue & Customs [2014] UKFTT 277 (TC) (21 March 2014)

Intekx Ltd v Revenue & Customs [2014] UKFTT 277 (TC) (21 March 2014)

Intekx knew or ought to have known that its transactions were connected to fraudulent tax losses through MTIC contra-trading. Its due diligence was inadequate, and objective evidence established its participation in a fraudulent scheme. Therefore, it is not entitled to deduct input tax for the disputed transactions.

Source-derived case information.

Citation
[2014] UKFTT 277 (TC)
Parties
Appellant: Intekx Limited; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
21 March 2014
Procedural Posture
VAT Input Tax Appeal / Final Judgment
Outcome
Appeal dismissed
Legal Topics
MTIC Fraud, Input Tax Deduction, Contra Trading, VAT Evasion
Tax Law VAT MTIC Fraud Input Tax Deduction Contra Trading VAT Evasion

Source-derived case record

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 5 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

Intekx Limited

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

VAT Input Tax Appeal / Final Judgment

Legal Issues

  1. 1 Did Intekx know its transactions were connected to fraudulent tax loss?
  2. 2 Should Intekx have known its transactions were connected to fraudulent tax loss?

Ratio Decidendi

Intekx knew or ought to have known that its transactions were connected to fraudulent tax losses through MTIC contra-trading. Its due diligence was inadequate, and objective evidence established its participation in a fraudulent scheme. Therefore, it is not entitled to deduct input tax for the disputed transactions.

Court Disposition

Appeal dismissed

Orders

  • Entitlement to deduct input tax in the sum of £176,487.50 denied
  • No further relief granted to Intekx