In Abbott International Trading Ltd v HMRC (and related appeal) (TC02893 – 7 October) two companies reclaimed input tax. HMRC rejected the claims on the grounds that it appeared that the transactions were connected to MTIC fraud. The companies appealed and lodged an application for HMRC to disclose various documents including ‘a copy of all of the respondents’ policy documents in relation to “contra-trading” and the allocation of alleged tax losses’. The First-tier Tribunal dismissed the companies’ applications. Judge Sinfield held that ‘the appellants’ submission that HMRC cannot deny the appellants’ right to deduct input tax on goods without allocating the amount of the VAT loss to the appellants’ input tax claims and notwithstanding the possibility of double or multiple recovery of the VAT loss is unsustainable’.
Why it matters: The First-tier Tribunal rejected the companies’ contention that HMRC should be required to...
