ATEC Associates Ltd v HMRC

Administration and appeals: Reinstatement of appeal

In ATEC Associates Ltd v HMRC (Upper Tribunal – 27 May) a company which traded in computer components and mobile telephones claimed repayments of input tax. HMRC rejected the claims on the grounds that the transactions appeared to be connected with MTIC fraud.

The company appealed but failed to comply with a direction by the VAT Tribunal. In November 2008 the VAT Tribunal dismissed the appeals.

The company subsequently applied for the appeals to be reinstated contending that its directors had been badly let down by the company's accountant who had not informed them that the appeals had been heard and dismissed.

The First-Tier Tribunal rejected the application but the Upper Tribunal granted it.

Briggs J observed that there had been 'an extraordinary level of incompetence' on the part of the accountant and the company had subsequently dispensed with...