Infinity Distribution Ltd v HMRC

Administration and appeals: HMRC's right of set-off

In Infinity Distribution Ltd v HMRC (Ch D – 11 June) a company which traded in mobile telephones made several substantial repayment claims. HMRC rejected the claims on the grounds that it appeared that the transactions were connected with MTIC fraud. The company appealed. In July 2008 the Manchester tribunal allowed one of the appeals covering the period to May 2006 on the grounds that HMRC had failed to comply with a direction by the tribunal and ordered HMRC to credit the company with £12 957 628. HMRC set £10 556 324 against other amounts which it considered to be owed by the company. In November 2008 HMRC made a net repayment of £2 401 304. The company took proceedings in the Ch D contending that HMRC had not been entitled...