Roots 89 Ltd v Revenue & Customs [2011] UKFTT 94 (TC) (28 January 2011)

Roots 89 Ltd v Revenue & Customs [2011] UKFTT 94 (TC) (28 January 2011)

HMRC established, on the balance of probabilities, that the Appellant’s transactions were connected with fraudulent tax losses and that the Appellant knew or ought to have known that there could be no other reasonable explanation for its transactions than that they were connected to fraudulent evasion of VAT. Accordingly, the Appellant’s claim for input tax was denied.

Citation
[2011] UKFTT 94 (TC)
Parties
Appellant: Roots 89 Limited; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
28 January 2011
Procedural Posture
VAT MTIC Appeal / First Tier Tribunal (tax), Final Judgment
Outcome
Appeal dismissed
Legal Topics
MTIC Fraud, Input Tax Denial, Kittel Test, Knowledge of Fraud, Supply Chain Tracing
Tax Law VAT MTIC Fraud Input Tax Denial Kittel Test Knowledge of Fraud Supply Chain Tracing

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 3 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

Roots 89 Limited

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

VAT MTIC Appeal / First Tier Tribunal (tax), Final Judgment

Legal Issues

  1. 1 Whether HMRC proved that the Appellant’s transactions were connected with fraudulent tax losses
  2. 2 Whether the Appellant knew or ought to have known that its transactions were so connected

Ratio Decidendi

HMRC established, on the balance of probabilities, that the Appellant’s transactions were connected with fraudulent tax losses and that the Appellant knew or ought to have known that there could be no other reasonable explanation for its transactions than that they were connected to fraudulent evasion of VAT. Accordingly, the Appellant’s claim for input tax was denied.

Court Disposition

Appeal dismissed

Orders

  • Appellant’s claim for input tax in the amount of £1,271,248 for VAT period 04/06 is denied.