S and I Electronics Plc v Revenue and Customs: FTTTx 18 May 2009

FTTTx VAT – Input tax – MTIC Fraud – Incorporation of Kittel into domestic law – Effect of ECHR decision in Bulves v Bulgaria on domestic application of Kittel test – Does ECA 72 prevail over HRA 98? – Whether knowledge of a particular fraud is required – Whether the tax loss is established only if there is an unpaid assessment – Whether all input tax or only that evaded should be denied – Whether discrimination in HMRC’s approach is relevant to test
VAT – Input tax – MTIC Fraud – Whether connection to fraud – Whether fraud – Whether trader knew or should have known of fraud: whether trader took all reasonable precautions – No – Whether trader would have discovered fraud if he had taken all reasonable precaution – Yes
VAT – Input tax – MTIC Fraud – Contra trade – Need of connection between the clean and dirty chain in the form of some arrangement linking them


[2009] UKFTT 108 (TC)




England and Wales


Updated: 03 August 2022; Ref: scu.373660