JP Commodities Ltd v Revenue & Customs [2011] UKFTT 622 (TC) (16 September 2011)

JP Commodities Ltd v Revenue & Customs [2011] UKFTT 622 (TC) (16 September 2011)

JP Commodities Ltd is not entitled to repayment of input tax because, on the balance of probabilities, it knew or ought to have known that its transactions were connected with fraudulent evasion of VAT. The only reasonable explanation for the circumstances of the transactions was their connection to fraud, as evidenced by orchestrated deal chains, consistent mark-ups, and links to defaulting traders.

Citation
[2011] UKFTT 622
Parties
Appellant: JP Commodities Ltd; Respondent: Revenue & Customs (HMRC)
Jurisdiction
United Kingdom
Judgment Date
16 September 2011
Procedural Posture
VAT Repayment Appeal / First Tier Tribunal (tax) Decision
Outcome
Appeal dismissed
Legal Topics
VAT Fraud, MTIC Fraud, Input Tax Repayment, Contra Trading, Burden of Proof, Standard of Proof
Tax Law European Union Law VAT Fraud MTIC Fraud Input Tax Repayment Contra Trading Burden of Proof Standard of Proof

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Parties

JP Commodities Ltd

Appellant

Revenue & Customs (HMRC)

Respondent

Procedural Posture

VAT Repayment Appeal / First Tier Tribunal (tax) Decision

Legal Issues

  1. 1 Whether JP Commodities Ltd is entitled to repayment of input tax under VAT law
  2. 2 Whether the transactions were connected with VAT fraud
  3. 3 Whether the appellant knew or ought to have known of the connection to fraud

Ratio Decidendi

JP Commodities Ltd is not entitled to repayment of input tax because, on the balance of probabilities, it knew or ought to have known that its transactions were connected with fraudulent evasion of VAT. The only reasonable explanation for the circumstances of the transactions was their connection to fraud, as evidenced by orchestrated deal chains, consistent mark-ups, and links to defaulting traders.

Court Disposition

Appeal dismissed

Orders

  • Repayment of input tax in the sum of £673,493.65 is denied to JP Commodities Ltd.