In HMRC v Beigebell Ltd [2020] UKUT 0176 (TCC) (4 June 2020) the Upper Tribunal remitted an appeal concerning missing trader intra-community (MTIC) fraud back to a differently constituted First-tier Tribunal for a rehearing citing several errors of law in the original decision.
The case concerned HMRC’s denial of Beigebell’s claim for input tax recovery on a number of purchases of memory cards. Recovery was denied on the grounds that the company either knew or should have known that the purchases were connected with the fraudulent evasion of VAT (under the Kittel principle).
The FTT had previously allowed Beigebell’s appeal holding that the Director of Beigebell (Jack Orton) did not know and should not have known that the transactions were connected with fraud when he entered into them. HMRC appealed this decision on three grounds.
First HMRC argued that the decision was inadequately reasoned...
