Tax: End of the merry-go-round?
The European Court of Justice's decision in favour of Bond House and against the approach taken by HM Revenue & Customs in its fight against 'carousel' and 'missing trader intra-community fraud' was groundbreaking
Bond House was a dealer in computer components. A significant part of its business comprised the purchasing of computer processors – CPUs – from traders registered for VAT in the UK and the selling of CPUs to traders registered for VAT in other European Union (EU) member states. Bond House’s repayment of significant amounts of input VAT was refused by HM Revenue and Customs (HMRC). Optigen and Fulcrum, similarly, were traders, mainly in computer chips. They purchased these from companies in the UK and sold them to customers located in other member states. They became innocent parties to a number of transactions comprising a carousel fraud; and HMRC declined their VAT returns.
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