A rare piece of good news was handed down to traders involved in MTIC VAT appeals last month when Mr Justice Lewison sitting as a Judge of the Tax Tribunal Upper-tier released his decision in the ongoing series of appeals and counter-appeals involving Brayfal Ltd (Brayfal) (HMRC v Brayfal Ltd [2011] UKUT B6 (TCC)).
This latest appeal was brought by HMRC against an earlier decision of the First-tier Tribunal and was dismissed in clear terms by Lewison J. Brayfal has secured a significant victory; one which will give heart to other traders alleged to have been involved in so-called contra trading schemes.
In August 2008 the VAT Tribunal allowed Brayfal’s appeal finding that at the time it was engaged in the disputed transactions the company could not and did not know that there was any connection to fraud. HMRC appealed this decision...
