Late Editions Ltd v Revenue & Customs [2009] UKFTT 166 (TC) (14 July 2009)

Late Editions Ltd v Revenue & Customs [2009] UKFTT 166 (TC) (14 July 2009)

The Tribunal found that all eight transactions by the Appellant were traced back to defaulting traders involved in MTIC fraud, and that the Appellant knew or should have known its purchases were connected to fraudulent VAT chains. The Appellant's due diligence and verification steps were insufficient to discharge its obligation. The appeal was dismissed and input tax denied.

Citation
[2009] UKFTT 166 (TC)
Parties
Appellant: Late Editions Ltd; Respondents: The Commissioners for Her Majesty's Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
14 July 2009
Procedural Posture
VAT Input Tax Appeal / Final Judgment
Outcome
Appeal dismissed
Legal Topics
MTIC Fraud, Input Tax Denial, Hearsay Evidence, Due Diligence, Joint and Several Liability
Tax Law VAT Fraud MTIC Fraud Input Tax Denial Hearsay Evidence Due Diligence Joint and Several Liability

Case Brief

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Parties

Late Editions Ltd

Appellant

The Commissioners for Her Majesty's Revenue & Customs

Respondents

Procedural Posture

VAT Input Tax Appeal / Final Judgment

Legal Issues

  1. 1 Whether the Appellant knew or should have known its transactions were connected to fraudulent VAT chains
  2. 2 Treatment of hearsay evidence in tribunal proceedings
  3. 3 Relevance of ECJ Kittel decision not reflected in UK statute

Ratio Decidendi

The Tribunal found that all eight transactions by the Appellant were traced back to defaulting traders involved in MTIC fraud, and that the Appellant knew or should have known its purchases were connected to fraudulent VAT chains. The Appellant's due diligence and verification steps were insufficient to discharge its obligation. The appeal was dismissed and input tax denied.

Court Disposition

Appeal dismissed

Orders

  • Input tax totalling £1,052,380 denied
  • No further relief granted