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