HMRC cannot appeal £2.4m VAT decision

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Permission to appeal the decision that saw Unistar Group and Unistar Trading win back withheld VAT repayments rejected by the court

HMRC has been refused permission to appeal against a tax tribunal decision, which saw mobile phone companies Unistar Group and Unistar Trading win back £2.4 million in withheld VAT payments.

The companies won their appeal against HMRC in January, after the judge at the Manchester first-tier tax tribunal found neither company knew “nor ought to have known” the transactions were part of a missing trader intra-community (MTIC) fraud.

HMRC then applied for permission to appeal the decision on March 14, but this application has now been rejected by the court.

HMRC said: “HMRC has largely driven this type of fraud out of the mobile phone sector, to the benefit of the legitimate trade, but we are naturally disappointed to be refused permission to appeal this specific case.

“We continue to successfully tackle other VAT fraud in the mobile phone sector through the courts, winning more than 100 tribunal decisions protecting over £300 million in the UK.”

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