[2006] EWCA Crim 2518

If a transaction in a carousel fraud was itself lawful, there was economic activity which would be subject to VAT irrespective of whether any particular trader was acting fraudulently or not. Customs and Excise's entitlement to withhold a repayment where fraud could be proved against the taxable person did not mean that the fraudulent economic activity was not subject to the VAT regime.

CA (Crim Div) (Hooper LJ, Simon J, Lloyd-Jones J)

08/11/2006