Speed Read: The decision of the Court of Appeal in Mobilx Ltd concerns w d hat the expression 'knew or should have known' that transactions were or were likely to have been connected with fraud means in the context of MTIC fraud. The Court held that the determining factor is 'participation', whether through actual or constructive knowledge, in that fraud. Constructive knowledge is deemed if the only reasonable explanation for the circumstances in which the purchase took place was that it was a transaction connected with fraud; in essence, the test is 'is the transaction 'too good to be true'?
