Mynt Ltd v Revenue & Customs [2011] UKFTT 162 (TC) (16 February 2011)

Mynt Ltd v Revenue & Customs [2011] UKFTT 162 (TC) (16 February 2011)

Mynt Ltd's input tax claims were denied because HMRC proved that the transactions were connected to fraudulent evasion of VAT and that Mynt Ltd knew or should have known of this connection, based on evidence of deal chains, credit risks, due diligence failures, and the operation of MTIC fraud in the sector.

Citation
[2011] UKFTT 162 (TC)
Parties
Appellant: Mynt Ltd; Respondents: The Commissioners for Her Majesty’s Revenue and Customs (VAT)
Jurisdiction
United Kingdom
Judgment Date
16 February 2011
Procedural Posture
VAT Appeal / Final Judgment
Outcome
Appeal dismissed
Legal Topics
MTIC Fraud, Input Tax Credit, Fraudulent Evasion of VAT, Knowledge and Means of Knowledge, Due Diligence
Tax Law VAT MTIC Fraud Input Tax Credit Fraudulent Evasion of VAT Knowledge and Means of Knowledge Due Diligence

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Parties

Mynt Ltd

Appellant

The Commissioners for Her Majesty’s Revenue and Customs (VAT)

Respondents

Procedural Posture

VAT Appeal / Final Judgment

Legal Issues

  1. 1 Whether Mynt Ltd's input tax claims were connected to fraudulent evasion of VAT
  2. 2 Whether Mynt Ltd knew or should have known of the connection to fraud
  3. 3 Whether HMRC proved fraudulent evasion and connection to Mynt's transactions

Ratio Decidendi

Mynt Ltd's input tax claims were denied because HMRC proved that the transactions were connected to fraudulent evasion of VAT and that Mynt Ltd knew or should have known of this connection, based on evidence of deal chains, credit risks, due diligence failures, and the operation of MTIC fraud in the sector.

Court Disposition

Appeal dismissed

Orders

  • Input tax claims for February, March, April, and May 2006 denied
  • Assessments to recover input tax previously credited and repaid to Mynt Ltd upheld