Tribunal dismisses carousel fraud appeal | AccountingWEB

Tribunal dismisses carousel fraud appeal

The upper tier tax tribunal has upheld the principle that companies caught up in missing trader fraud can be liable for VAT penalties.

The case, My Secrets Limited and the Commissioners for HMRC FTC/76/2011, relates to missing trader intra-community (MTIC) fraud involving mobile phones. Under MTIC fraud companies charge VAT and then disappear without paying VAT to HMRC.

In 2008, HMRC said that My Secrets, at the time a wholesale trader in mobile phones, was not entitled to deduct input tax of £819,280 for four deals in June and July 2006.


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