Appeals to the First Tier Tribunal (Tax and VAT Tribunals)
If you have been accused of carousel fraud or MTIC fraud and HMRC are withholding a claim for VAT from you or your business, the specialist fraud solicitors at Farleys can help.
Our experienced fraud solicitors have represented several clients accused of MTIC or carousel fraud, and can assist in representing you at the VAT Tribunal. To speak to a solicitor who can help you to form a reclaim appeal to the tax Tribunal, call 0333 331 4168 or email us.
VAT Reclaim Appeals to the First Tier Tax Tribunal
There is a right to deduct and claim a repayment of input tax where it exceeds output tax in any VAT accounting period.
When HMRC suspect chains of transactions are vitiated by MTIC fraud or carousel fraud, it can lead to the VAT returns being subjected to periods of extended verification and in some cases, the claims for input tax are denied.
The First Tier VAT Tribunal deals with appeals of those traders who have had their reclaim of input tax denied by HMRC on the basis that the goods they have exported have been involved in an MTIC chain somewhere up the line.
Carousel Fraud Related Appeals to the First Tier Tax Tribunal
An appeal to the Tribunal in a case where it is alleged deals are vitiated by MTIC fraud is complex and specialist legal advice should be sought at the earliest opportunity.
Briefly, if a trader had no means of knowing of a fraud, he cannot be held responsible, but if he had the means at his disposal of knowing that by his purchase he was participating in a transaction connected with fraudulent evasion of VAT, he will lose the right to reclaim his VAT (deduct); not for negligence but because the objective criteria for making a VAT reclaim are not met.