Manatlantic Ltd v Revenue & Customs [2011] UKFTT 527 (TC) (03 August 2011)

Manatlantic Ltd v Revenue & Customs [2011] UKFTT 527 (TC) (03 August 2011)

The Tribunal found that in each transaction, there was a fraudulent evasion of VAT in the supply chain, that the Appellant's purchases were connected to that fraud, and that the Appellant knew or should have known of the connection. Therefore, HMRC was entitled to refuse the input tax deduction.

Citation
[2011] UKFTT 527 (TC)
Parties
Appellant: Manatlantic Limited; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
03 August 2011
Procedural Posture
VAT Input Tax Appeal / First Tier Tribunal (tax) Final Decision
Outcome
Appeal dismissed
Legal Topics
Value Added Tax (vat), Input Tax Deduction, MTIC Fraud, Fraudulent Evasion of VAT, Due Diligence, Joint and Several Liability
Tax Law European Union Law Value Added Tax (vat) Input Tax Deduction MTIC Fraud Fraudulent Evasion of VAT Due Diligence Joint and Several Liability

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Parties

Manatlantic Limited

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

VAT Input Tax Appeal / First Tier Tribunal (tax) Final Decision

Legal Issues

  1. 1 Whether the Appellant's transactions were connected with the fraudulent evasion of VAT
  2. 2 Whether the Appellant knew or should have known of the connection to fraud
  3. 3 Whether HMRC's refusal of input tax deduction was valid

Ratio Decidendi

The Tribunal found that in each transaction, there was a fraudulent evasion of VAT in the supply chain, that the Appellant's purchases were connected to that fraud, and that the Appellant knew or should have known of the connection. Therefore, HMRC was entitled to refuse the input tax deduction.

Court Disposition

Appeal dismissed

Orders

  • HMRC's refusal of input tax deduction is upheld.
  • No right to deduct input tax for the periods 01/06, 03/06, and 05/06.