MTIC Fraud Tribunal Success
MTIC Fraud Tribunal Success
CTM represented Ulster Metal Refiners Limited in a First-Tier Tribunal appeal involving MTIC fraud allegations in the soft drinks sector.
The Case
HMRC had denied input tax claimed by Ulster Metal Refiners Limited on the basis that the company’s transactions were connected with MTIC fraud in the soft drinks supply chain.
Tribunal Findings
The Tribunal determined that HMRC had not properly traced the vast majority of the supply chains on which input tax had been denied. HMRC was unable to establish a connection with fraud for most of the transactions in question.
The Result
The appeal succeeded for approximately £420,000, representing 90% of the input tax that had initially been denied by HMRC. This was a significant victory for the appellant and demonstrated the importance of rigorously challenging HMRC’s evidence in MTIC cases.
CTM’s Track Record
This case marked CTM’s seventh successful MTIC tribunal appeal, further establishing the firm’s expertise in defending businesses against fraud allegations in VAT supply chain disputes.
Full Decision
The full decision of the Tribunal can be read at: bailii.org/uk/cases/UKFTT/TC/2021/TC08229.pdf
Frequently asked questions
What happened in the Ulster Metal Refiners MTIC appeal?
HMRC denied input tax claimed by Ulster Metal Refiners Limited, alleging its transactions were connected with MTIC fraud in the soft drinks supply chain. CTM represented the company before the First-Tier Tribunal, which found HMRC had not properly traced most of the supply chains. The appeal succeeded for approximately £420,000, around 90% of the input tax denied.
Why did HMRC lose the Ulster Metal Refiners case?
The Tribunal determined that HMRC had not properly traced the vast majority of the supply chains on which input tax had been denied. As a result, HMRC was unable to establish a connection with fraud for most of the transactions in question, and the appeal succeeded for around 90% of the input tax originally denied.
Can HMRC's evidence be challenged in an MTIC fraud appeal?
Yes. In the Ulster Metal Refiners case, the First-Tier Tribunal found that HMRC had not properly traced most of the supply chains and could not establish a connection with fraud for most transactions. The outcome demonstrated the importance of rigorously challenging HMRC's evidence in MTIC cases involving denied input tax.
Where can the full Ulster Metal Refiners decision be read?
The full First-Tier Tribunal decision is published on BAILII under reference TC08229 (2021). It sets out the Tribunal's findings that HMRC had not properly traced the vast majority of the supply chains and was unable to establish a connection with fraud for most of the transactions in question.
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