Pyramid Distribution Ltd v Revenue & Customs (VAT- MTIC- denial of input VAT) [2020] UKFTT 27 (TC) (15 January 2020)

Pyramid Distribution Ltd v Revenue & Customs (VAT- MTIC- denial of input VAT) [2020] UKFTT 27 (TC) (15 January 2020)

The Appellant's transactions were connected with fraudulent evasion of VAT perpetrated by Ren and Presence; Appellant knew or ought to have known of this connection due to inadequate due diligence and clear risk indicators; input VAT deduction is denied.

Citation
[2020] UKFTT 27
Parties
Appellant: Pyramid Distribution Limited; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
15 January 2020
Procedural Posture
VAT Appeal / Final Judgment After Oral Hearing
Outcome
Appeal dismissed
Legal Topics
MTIC Fraud, Input VAT Denial, Due Diligence, Fraudulent Evasion of VAT, Supply Chain Tracing
Tax Law VAT Fraud MTIC Fraud Input VAT Denial Due Diligence Fraudulent Evasion of VAT Supply Chain Tracing

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Parties

Pyramid Distribution Limited

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

VAT Appeal / Final Judgment After Oral Hearing

Legal Issues

  1. 1 Whether input VAT claimed by the Appellant was incurred in transactions connected with fraudulent evasion of VAT
  2. 2 Whether the Appellant knew or should have known of the connection to fraud
  3. 3 Whether HMRC proved tax loss and fraudulent evasion

Ratio Decidendi

The Appellant's transactions were connected with fraudulent evasion of VAT perpetrated by Ren and Presence; Appellant knew or ought to have known of this connection due to inadequate due diligence and clear risk indicators; input VAT deduction is denied.

Court Disposition

Appeal dismissed

Orders

  • Input VAT deduction denied for VAT periods 03/15, 06/15, and 09/15
  • Assessments and HMRC decisions maintained