Butt v Commissioners for Her Majesty's Revenue and Customs

Court of Appeal (Criminal Division), [2019] EWCA Civ 554, Lord Justice Gross, Lord Justice Peter Jackson and Lady Justice Rose, 12 February, 25 March; 3 April 2019

Tax - HMRC - MTIC fraud - VAT - Abuse of Rights principle - Legal Certainty - Value Added Tax Act 1994, sections 24 to 26, 60 and 61.

The appellant was a director and 50 per cent shareholder of a company, Waterfire Ltd ("Waterfire"), against which HMRC issued a penalty on the basis that that the company, through its directors, was engaged in a missing trader intra-Community ("MTIC") fraud. The appellant appealed against a decision of the Upper Tribunal (Tax and Chancery Chamber) upholding a decision of the First-tier Tribunal dismissing the appellant's appeal against the imposition on him of a penalty of £3,137,483 under sections 60 and 61 of the Value Added Tax Act 1994 ("VATA").