ME365 and SITL V HMRC ANNEX A

ME365 and SITL v HMRC ANNEX A

SUMMARIES OF DEALS UNDER APPEAL

A.1.1The table at A.2 sets out the details, as found by the tribunal, of each transaction or deal in issue in the appeals. Notes about the table are set out at A.3. The table uses the following abbreviations:

A.1.2“M” deals are deals involving Mobile Export 365 Ltd. “S” deals are deals involving Shelford IT Ltd. All deals involve Shelford Trading Ltd. This is therefore not repeated in the table.

A.1.3The following abbreviations are used for the default traders or hijackings identified in column (5):

Bar TrBargain Trading Ltd

BullfinchBullfinch Sytems Ltd

C+BC&B Trading Ltd

CHPCHP Distribution Ltd

M AllenM Allen General Traders, the name used in this deal by someone who hijacked this trader’s VAT number.

This was shown as another company, F Options, in the original decisions by HMRC.

Oracle Oracle (UK) Ltd

RobleRoble Communications Ltd

StellaStella Communications UK Ltd

A.1.4The abbreviations used for the suppliers in column (6) (the trader supplying to the person who supplied the Axxia Group in this deal) indicate the different suppliers to the direct suppliers to the Axxia Group shown in column (7). This column is included to show where those who supplied the Axxia Group direct also supplied suppliers to the Axxia Group (GlobCom and NWT appear in both columns). It also indicates where there is a pattern of suppliers to the direct supplier (as with the supplies by Forex to @tomic in each deal involving @tomic). Consistent abbreviationsa re therefore used in columns (6) and (7). Save as noted, the precise identity of a supplier in column (6) is not relevant to these decisions, and the tribunal does not therefore need to repeat the full evidence put to it about these suppliers.

A1.5The following abbreviations are used to identify the suppliers listed in column (7) as the suppliers directly to the Axxia Group:

@tomic@tomic Ltd

GlobcomGlobal Communications Ltd

MitekMitek Computer Components Ltd

NWTNorth West Traders Ltd

Our COur Communications Ltd

PrimePrimeline (Europe) Ltd

UniBUnibrand Ltd (also referred to as UniBrand Ltd)

A.1.6Evidence of links between Globcom and UniBis set out in Annex B at B.1.10.

A.1.7The following abbreviations are used to identify the customers listed in column (8) as the customers directly supplied by either ME365 or SITL. An asterisk (*) after the name indicated that this supply was made out of the European Union and was therefore an export and not an intra-Community acquisition. All other customers are based in the European Union.

F&S*Farouk & Suhail LLC of Dubai

FranceFrance Affaires International SARL of Paris

LavinaLavina Trading Ltd of Cyprus

MidcomMidcom International LLC

MKNMK Digital World (Cyprus) Lt6d of Cyprus

ParisLa Parisienne du Commerce SARL of Paris

A.1.8Evidence of links between France and Paris is noted in Annex B at B.3.13.

A2The table:

(1)
Deal / (2)
Date / (3)
Product / (4)
No / (5)
Defaulter
/Contra / (6)
S2 / (7)
S1 / (8)
C1 / (9)
Price in / (10)
Price out / (11)
Markup / Markup
on deal
or day
M 03 1 / 13 03 / N 3230 / 10 000 / Oracle / 3G T / NWT / Midcom / 125 / 132.50 / 6.0 / 6
M 03 2 / 13 03 / V3i / 3 940 / Oracle / Gani / Globcom / Midcom / 108 / 114.50 / 6.0 / 6
M 03 3 / 13 03 / N 6230i / 5 000 / Oracle / TEC / UniB / F&S* / 127 / 135 / 6.3 / 6
M 03 4 / 14 03 / N N70 / 5 000 / Bar Tr / ARC / Mitek / France / 220 / 233.50 / 6.1 / 6
M 03 5 / 14 03 / ipod / 2 000 / M Allen / ICL / Mitek / France / 220 / 233 / 5.9 / 6
M 03 6 / 15 03 / N 9500 / 5 000 / Bar Tr / Rapt / Mitek / France / 315 / 334 / 6.0 / 6
M 03 7 / 15 03 / N 8800 / 5 000 / Roble / ARC / Mitek / France / 435 / 461 / 6.0 / 6

M 03 8

/ 16 03 / N 8800 / 3 000 / CONTRA / Forex / @tomic / Lavina / 435 / 482 / 10.8 / 8
M 03 9 / 16 03 / N 9300i / 3 500 / CONTRA / Forex / @tomic / Lavina / 330 / 353 / 7.0 / 8
M 03 10 / 16 03 / N N90 / 4 500 / CONTRA / Forex / @tomic / Lavina / 265 / 283.50 / 7.0 / 8
M 03 11 / 16 03 / SE W900i / 4 000 / CONTRA / Forex / @tomic / Lavina / 279 / 298.50 / 7.0 / 8
M 03 12 / 16 03 / N 9500 / 6 000 / CONTRA / Forex / @tomic / Lavina / 318 / 340 / 7.0 / 8
M 03 13 / 16 03 / N 9300i / 7 000 / Bar Tr / Rapt/
ICL / Mitek / Paris / 330 / 350 / 6.1 / 6
M 03 14 / 17 03 / SE W900i / 5 000 / Bar Tr / ICL/
ARC / Mitek / France / 283 / 300 / 6.0 / 6
M 03 15 / 17 03 / N N90 / 3 000 / Roble / Rapt / Mitek / France / 264 / 280 / 6.1 / 6
M 03 16 / 17 03 / N 6111 / 2 500 / Roble / Tech / Mitek / France / 165 / 175 / 6.1 / 6
M 03 17 / 17 03 / N 3230 / 4 000 / Oracle / NWT / Our C / F&S* / 123 / 130.50 / 6.1 / 6
M 03 18 / 17 03 / N 7610 / 5 000 / Oracle / NWT / Our C / F&S* / 129 / 136.50 / 5.8 / 6
M 03 19 / 17 03 / V3i / 5 000 / Oracle / NWT / Our C / Midcom / 139 / 147.50 / 6.1 / 6
M 03 20 / 17 03 / N 6230i / 11 000 / Oracle / NWT / Our C / Midcom / 119 / 126 / 5.9 / 6
M 03 21 / 20 03 / N 6270 / 3 000 / Roble / MH / Mitek / Paris / 200 / 212 / 6.0 / 6
M 03 22 / 20 03 / N 9500 / 7 000 / CHP / ICL / Mitek / Paris / 318 / 337 / 6.0 / 6
M 03 23 / 20 03 / N 9300 / 3 000 / CHP / ARC / Mitek / Paris / 198 / 210 / 6.1 / 6
M 03 24 / 20 03 / N 8801 / 3 000 / Roble / Rapt / Mitek / Paris / 390 / 413.50 / 6.0 / 6
M 03 25 / 21 03 / N N70 / 8 000 / Stella / Tech+/
G Com / Mitek / France / 220 / 233 / 5.9 / 6
M 03 26 / 21 03 / N N90 / 8 000 / CHP / Rapt/
ARC / Mitek / France / 258 / 273.50 / 6.0 / 6
M 03 27 / 21 03 / N 8800 / 2 000 / CHP / RVM / Mitek / France / 428 / 453.50 / 6.0 / 6
M 03 28 / 21 03 / N 8801 / 4 000 / Roble / MH/
Rapt / Mitek / France / 390 / 413.50 / 6.0 / 6
S 03 1 / 13 03 / N 3230 / 15 000 / Oracle / Globcom / Our C / F&S* / 125 / 132.50 / 6.0 / 6
S 03 2 / 13 03 / N 6230i / 10 000 / Oracle / TEC / UniB / F&S* / 127 / 134.50 / 5.9 / 6
S 03 3 / 14 03 / N 8800 / 3 000 / Roble / ICL / Mitek / Paris / 428 / 453.50 / 6.0 / 6
S 03 4 / 14 03 / N 8800 / 2 000 / Roble / Rapt / Mitek / Paris / 428 / 453.50 / 6.0 / 6
S 03 5 / 16 03 / N8800 / 3 000 / Bar Tr / ARC / Mitek / France / 435 / 459.50 / 5.6 / 6
S 03 6 / 16 03 / N 9300i / 400 / Roble / ICL / Mitek / Paris / 330 / 350 / 6.1 / 6
S 03 7 / 20 03 / N 8800 / 200 / Roble / MH / Mitek / Paris / 425 / 451 / 6.1 / 6
M 04 1 / 6 04 / N N70 / 15 000 / CONTRA / HiTec / UniB / Lavina / 210 / 223 / 6.2 / 6
M 04 2 / 6 04 / N 9300i / 10 000 / CONTRA / HiTec / UniB / Lavina / 295 / 312.50 / 5.9 / 6
M 04 3 / 6 04 / N N90 / 4 000 / C+B / Mayst / Mitek / France / 260 / 275.50 / 6.0 / 6
M 04 4 / 7 04 / N 9500 / 4 000 / CONTRA / Forex / @tomic / Lavina / 311 / 329.50 / 5.9 / 6
M 04 5 / 7 04 / N 9300 / 6 000 / CONTRA / Forex / @tomic / Lavina / 173 / 183.50 / 6.1 / 6
M 04 6 / 7 04 / N 6680 / 3 000 / CONTRA / Forex / @tomic / Lavina / 172 / 182 / 5.8 / 6
M 04 7 / 7 04 / N6630 / 20 000 / CONTRA / HiTec / UniB / MK / 129 / 137 / 6.2 / 6
M 04 8 / 7 04 / N 7610 / 20 000 / CONTRA / HiTec / UniB / MK / 126 / 133.50 / 6.0 / 6
M 04 9 / 7 04 / N 3230 / 20 000 / CONTRA / HiTec / UniB / Lavina / 124 / 131.50 / 6.0 / 6
M 04 10 / 7 04 / Imate / 4 400 / Bullfinch / Micro / Mitek / France / 490 / 519.50 / 6.0 / 6
M 04 11 / 7 04 / N N90 / 4 600 / Bullfinch / ICL / Mitek / France / 260 / 275.50 / 6.0 / 6
M 04 12 / 7 04 / N 3250 / 4 000 / Bullfinch / ICL / Mitek / France / 208 / 220.50 / 6.0 / 6
M 04 13 / 7 04 / N 9500 / 10 000 / Bullfinch/
C+B / Rapt/
ARC/
Mayst / Mitek / France / 315 / 334 / 6.0 / 6
M 04 14 / 7 04 / N 8800 / 7 000 / C+B / ARC/
Tech+ / Mitek / France / 389 / 412 / 5.9 / 6
M 04 15 / 10 04 / N 9300i / 8 000 / C+B/
Bullfinch / ARC/
AMR / Mitek / Paris / 312 / 331 / 6.1 / 6
M 04 16 / 10 04 / N 8800 / 6 000 / C+B/
Bullfinch / Rapt/
ICL / Mitek / Paris / 389 / 412.50 / 6.0 / 6
M 04 17 / 10 04 / SE W900i / 3 500 / Bullfinch / Int / Mitek / Paris / 280 / 297 / 6.1 / 6
M 04 18 / 10 04 / SE W900i / 4 500 / C+B / Tech+ / Mitek / Paris / 280 / 297 / 6.1 / 6
M 04 19 / 10 04 / N 7380 / 5 000 / C+B / ICL / Mitek / Paris / 242 / 256.50 / 6.0 / 6
M 04 20 / 10 04 / Imate / 3 000 / Bullfinch / ARC/
Micro / Mitek / Paris / 490 / 519.50 / 6.0 / 6
M 04 21 / 11 04 / N N90 / 5 000 / C+B / ICL / Mitek / France / 260 / 275.50 / 6.0 / 6
M 04 22 / 11 04 / N 8800 / 8 000 / C+B / Rapt/
ARC / Mitek / France / 385 / 408 / 6.0 / 6
M 04 23 / 11 04 / N 9500 / 8 000 / C+B/
Bullfinch / ICL/
Tech+ / Mitek / France / 299 / 317 / 6.0 / 6
M 04 24 / 11 04 / N 6680 / 15 000 / CONTRA / HiTec / UniB / Lavina / 160 / 170 / 6.2 / 6
M 04 25 / 11 04 / N 6681 / 5 000 / CONTRA / HiTec / UniB / Lavina / 130 / 138 / 6.2 / 6
M 04 26 / 11 04 / V3i / 20 000 / CONTRA / HiTec / UniB / MK / 137 / 145 / 5.8 / 6
M 04 27 / 11 04 / N 6630 / 15 000 / CONTRA / HiTec / UniB / MK / 128 / 135.50 / 5.9 / 6
S 04 1 / 6 04 / N N90 / 6 000 / CONTRA / HiTec / UniB / Lavina / 258 / 273.50 / 6.0 / 6
S 04 2 / 6 04 / S D800 / 8 000 / CONTRA / HiTec / UniB / Lavina / 161 / 171 / 6.2 / 6
S 04 3A / 11 04 / SE W900i / 6 000 / CONTRA / Ascomp / Prime / Lavina / 285 / 302 / 6.0 / 6
S 04 3B / 11 04 / N 7380 / 2 000 / CONTRA / Ascomp / Prime / Lavina / 250 / 265 / 6.0 / 6
S 04 4A / 11 04 / SE W800i / 3 000 / CONTRA / Ascomp / Prime / Lavina / 163 / 172.50 / 5.8 / 6
S 04 4B / 11 04 / N 8800 / 3 000 / CONTRA / Ascomp / Prime / Lavina / 390 / 413.50 / 6.0 / 6
S 04 4C / 11 04 / S D800 / 3 000 / CONTRA / Ascomp / Prime / Lavina / 164 / 174 / 6.1 / 6
S 04 5 / 11 04 / N N90 / 5 000 / CONTRA / Forex / @tomic / Lavina / 257 / 272.50 / 6.0 / 6
S 04 6 / 20 04 / N 7610 / 20 000 / CONTRA / HiTec / UniB / MK / 124 / 129 / 4.0 / 4
S 04 7 / 20 04 / V3i / 20 000 / CONTRA / HiTec / UniB / MK / 134 / 139.50 / 4.1 / 4
S 04 8 / 20 04 / N 6630 / 20 000 / CONTRA / HiTec / UniB / MK / 124 / 129 / 4.0 / 4
S 04 9 / 21 04 / N N70 / 5 000 / CONTRA / WTC / UniB / MK / 215 / 223.50 / 4.0 / 4
S 04 10 / 21 04 / N 9300i / 5 000 / CONTRA / WTC / UniB / MK / 300 / 312 / 4.0 / 4
S 04 11 / 21 04 / N 3230 / 10 000 / CONTRA / WTC / UniB / MK / 125 / 130 / 4.0 / 4

A.3Notes:

This table shows in summary form the essential details of each of the deals involving Mobile Export 365 and Shelford IT in March and April 2006. The following notes apply to the specific columnists:

Deal:This uses the HMRC deal numbers, indicating both the supplier making the input tax claim and the month.

Date:This is the date on which the deal is supposed to have occurred, mainly by reference to the dates on the invoices recording the deal.

ModelThe specific phone or other item traded (or said to have been traded)

NumberThe number of items in that deal

Default trader/

ContraThe name of the trader identified by HMRC as a defaulter; CONTRA indicates that HMRC contend that the default is in contra chains through the party identified as S1. The abbreviations used in this and the next two columns are explained in the decision where this is necessary to do so. It is sufficient for the purposes of this table that the different companies are given different but distinct abbreviations.

S2 and S1The two suppliers in the chain above Shelford Trading Ltd

C1The customer of either ME365 or SITL

Price inThe price invoiced to Shelford Trading by the supplier at S1

Price outThe price invoiced to the customer at C1

MarkupThe gross profit realised by the Axxia group expressed as a percentage of the price out to the price in (and therefore noting the return to the group and not merely to the individual trading companies). This is shown precisely, to the nearest 10p per £100 (less than the smallest unit of pricing used, which was 50p). ME365 and SITL paid Shelford Trading a standard £2 a unit on all these transactions – this £2 is therefore taken back into the margin.

Markup on dayThe gross profit recorded in the same way as for markup but by reference to all parallel sales on that day (for example, all sales to the same or to associated customers on that day). This is rounded to the nearest £1 per £100. For example, deals M 03 8, 9, 10, 11 and 12 were in the view of the tribunal to be regarded as parts of a single transaction, with an average return across all units averaging 8 per cent. Similarly, deals M04 4, 5 and 6 (involving the same suppliers to Axxia and customers from Axxia) produce a return properly regarded as applying to all the deals that day. This is also evidenced in the final groups of SITL deals in April 2006 by the consistent drop to 4 per cent.

A.4The details in this table, with the accompanying explanation, constitute findings by the tribunal on each of the deals.

ME365 and SITL Annex A