MTIC Fraud 2019-04-28T20:29:32+00:00

MTIC Fraud

CTM specialises in this area and is assisting small and multinational businesses in several Missing Trader Intra-Community (“MTIC”) appeals to the Tax Tribunal. We are, in fact, the most successful firm in the UK in MTIC appeals.

In its simplest form, a company sells a product in the UK, charges VAT and fails to pay that to HMRC. This does not relate to genuine business failure, but where there is a deliberate attempt to commit fraud. Often supply chains involve several companies who are all set up for the sole purpose of committing fraud.

These often-complex chain of companies are designed to frustrate HMRC as they conduct supply chain verifications. The cost to the country is currently running into the billions each year with the fraudsters becoming more and more ingenious.

If there is a connection to fraud, or HMRC have suspicions, they will withhold any VAT repayment due. Their current Policy is that they will withhold payment for up to a year before making a decision. However, if the delay is unreasonable, there are options to force HMRC to make a decision.

The reason for CTM’s success is in its staff. 3 members, including a Director and Senior Consultant, previously worked for HMRC investigating MTIC cases. Since leaving HMRC, all have more than 12 years’ experience in defending HMRC decisions to deny input tax, both within CTM and other top city law firms.

We are also able to conduct the advocacy ourselves and present defence cases to a very high standard. This saves substantially on costs if funding the litigation is an issue. Three separate CTM cases have resulted in success without instructing a tax barrister.

However, if counsel is instructed, we work with the most experienced and well-respected tax barristers in the industry and can provide a whole range of options.

  • How to win an MTIC Appeal

How to win an MTIC Appeal

April 28th, 2019|Comments Off on How to win an MTIC Appeal

MTIC Investigations and Appeals You need to read this if HMRC have decided to deny your company the right to deduct input tax (VAT) because you knew or should have known of a connection to [...]