Market leading insight for tax experts
View online issue

HMRC v Blue Sphere Global Ltd, Calltell Telecom Ltd v HMRC and Mobilx Ltd (in administration) v HMRC (No 2)

VAT: MTIC fraud

The CA has delivered an important judgment concerning MTIC fraud in four cases which it heard together. HMRC was successful in three of the cases but were unsuccessful in the case of HMRC v Blue Sphere Global Ltd (No 2) (CA – 12 May). A company (B) claimed an input tax repayment of more than £1 000 000 relating to transactions in mobile telephones. HMRC rejected the claim on the grounds that B ought to have known that the relevant transactions were connected to MTIC fraud.

B appealed contending that it had carried out adequate 'due diligence' on its supplier. The Tribunal rejected this contention finding that B's due diligence 'was not rigorous copious or comprehensive'. However the Ch D allowed B's appeal and the CA upheld this decision.

Moses LJ held that 'the Tribunal's findings were insufficient to establish that...

If you or your firm subscribes to, please click the login box below:

If you do not subscribe but are a registered user, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this article in full.
Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.