Connect Global Ltd v HMRC

In Connect Global Ltd v HMRC (Upper Tribunal – 19 October) HMRC rejected a claim for repayment of input tax on the grounds that the transactions appeared to be connected to MTIC fraud. The company appealed and HMRC made a late application to admit new evidence. The First-Tier Tribunal granted the application and the company appealed to the Upper Tribunal. The Upper Tribunal upheld the First-Tier Tribunal decision applying the principles laid down by Lightman J in Mobile Export 365 Ltd v HMRC [2007] STC 1794 and distinguishing C & E Commrs v GUS Merchandise Ltd [1992] STC 776 and HMRC v Brayfal Ltd Ch D 4 March 2008 unreported.