In My Secrets Ltd v HMRC (Upper Tribunal – 28 May) a company (M) reclaimed input tax of more than £800 000 in relation to seven transactions in mobile telephones. HMRC rejected the claim on the grounds that it appeared that the transactions were connected to MTIC fraud. The First-tier Tribunal reviewed the evidence in detail and allowed M’s appeal with regard to three transactions but dismissed it with regard to the other four transactions. M appealed to the Upper Tribunal which upheld the First-tier decision as one of fact.
Why it matters: The Upper Tribunal upheld the First-tier Tribunal decision that the company should have known that some of its transactions were connected to MTIC fraud.
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