Accountant Hacker Young was appointed as administrative receiver of Euro Cellular on November 1. Euro Cellular first went into administration in 2003.
Hacker Young is now chasing Customs for the refund most of which will go to the company s main backer a Mr D Goddard who is owed 3537672.
Euro Cellular started trading in 2003 but ran into problems a year later when a customer failed to pay for a shipment of handsets from mainland Europe that was subsequently stolen.
At the beginning of last year Euro Cellular attempted to sell corporate airtime contracts. But this failed when Customs failed to hand over the 4.2 million VAT refund. The company had no cashflow to promote itself in the contract market or to pay for the handsets it had ordered as part of the contract package.
Customs then applied an extended verification ruling as a ploy to withhold the VAT refund even though Euro Cellular was not involved in missing trader fraud and was constantly in contact with VAT inspectors.
The failure of the company is attributable to the non-repayment of the VAT by Customs said joint administrative receiver Andrew Andronikou.

Individual mobile phone traders have deposits that range from 10000 up to 10 million with the First Curacao International Bank (FCIB). But the money was frozen when the bank was placed into administration by the Central Bank in October.
The Central Bank informed traders before Christmas that it was going to repay 75 per cent of their funds by the end of the year providing they made a wire transfer for the full amount.
It then stated that the remaining 25 per cent would be paid when the winding down process had been completed.
So far however nothing has been repaid.
The Central Bank stated before Christmas: [We have] almost fully analysed the FCIB account holders database and solutions have been found for the majority of the problems encountered. Therefore the Bank now deems it highly probable that payments will be initiated before the end of the year .
It added: It is very obvious that payments cannot be made to account holders being subject to a criminal or civil embargo injunction .
Alias Dass partner at Birmingham-based Dass Solicitors said: No money has been paid to traders yet. If it doesn t pay in the next few weeks then we have a legal action against it.
But Dass added that major issues blocking repayments to traders had been cleared up.
Previously the Central Bank has placed all these conditions upon traders and made excuses that the Dutch authorities could bring a damages claim and that therefore it could not pay traders their funds he said.
It also said that it had to categorise all its accounts as telecoms and non telecoms . That is not happening now he said.
Courts in the Netherlands Antilles ruled on December 20 that the Central Bank should not impose conditions on the release of funds and that it should start to make payments.

This would change the way VAT is applied on cross-border transactions and help eliminate carousel fraud but the French are worried the tax change would move the VAT scamming problem to other EU nations.
The French decision has taken Chancellor Gordon Brown by surprise. Last month Brown said France had agreed to reverse charging after apparently receiving assurances from French finance minister Thierry Breton.
A Treasury spokesman told Accountancy Age magazine the French had raised technical issues that were not on the table when Brown told Parliament the French had agreed to the plan.
But one trader who has been following events closely said:
Brown announced to a parliamentary select committee he had secured the backing of the French finance minister. The French Government knew nothing of this. Today Brown has had to come clean and admit he doesn t have its backing.
All 27 EU member states must agree to reverse charging before the tax change can take effect.

Customers of Jamster and Jamba across Europe the Middle East and Africa will have access to 250000 full track downloads from the EMI catalogue. Headline acts include KT Tunstall Coldplay Depeche Mode Queen and Corinne Bailey Rae.
Jamster managing director Markus Berger-de Le³n said: Working with EMI means that we have joined forces with a very important major music label. We are extremely pleased to be able to present our customers an even more diverse selection of music ringtones and videos from great EMI artists.

Several larger independent dealership chains have been tipped to form a buying association in the coming months.

Daventry-based dealership Go Mobile Gwent-based dealership Get Connected and Paignton-based dealership Intek have held informal discussions about the possibility of uniting to secure better handset deals and network commercials claimed sources last week.
JAG headquartered in Cornwall has also been linked with a possible buying group. An association of all four would account for 175 retail sites stretching across southern England and the Midlands. (JAG has 81 stores Go Mobile has 35 Intek has 30 and Get Connected has 29.)
The larger dealers ones with more than 10 or 15 shops are constantly in talks about pooling their resources said a source. Because none of them are quite big enough on their own and they are struggling long-term to get the figures to stack up.
Another dealer source said: Most of those guys have talked about the possibility of combining in some fashion. Independent dealers are finding it really tough out there. They have to do something. The top guys run really good businesses and it makes sense for them to pool their resources.
One distributor who is familiar with their businesses said: It is quite a sensible thing to do. They are all good companies and it makes sense for them to get together in some fashion in a consolidating market.
No formal talks have been held at this stage but a buying association for SIM-free kit has in effect already been established through Go Mobile managing director Iain Humphrey s Sellfone 3G EPOS system which links with Humphrey s Shebang hardware distribution business.
Sellfone 3G is installed in around 450 independent retailers across the country including Get Connected and JAG. Shebang doubled its turnover to £10 million in three months at the end of last year following the launch of a web version of its Sellfone 3G software and the fulfilment deal with JAG.
Humphrey is on the verge of signing a similar fulfilment deal with Intek managing director Manny Hussain though Hussain was unavailable for comment.
Humphrey said: We are doing fulfilment for JAG and may sign a deal with Intek too. I am happy to work with John and Manny as customers. But I have never held formal talks about this kind of thing. Rumours have occurred because our relationship is so good.
However George said: It wouldn t be viable.

It has also launched a recruitment web site and will advertise career opportunities in store and in targeted trade campaigns.
Phones 4U operations director Tom Shorten said: We want to bring more quality to quality teams. Traditionally the application process for retail is poor applicants drop their CV in-store and wait around to hear. Its not spot on. We want to make it easier for applicants.
So far it has appointed eight staff to its recruitment team. The remaining positions will be filled in the next two or three weeks.

FCS chairman Ted Beddoes said: The award is richly deserved and makes a fantastic end to the 25th anniversary year of the FCS. It is great news that through her diligent work the FCS and its members are being recognised in this way the UK continues to present a dynamic competitive environment with great opportunities for the new and developing businesses the FCS represents.
The award recognises Brookes work in representing small and medium enterprises to the Government and the telecoms regulator Ofcom.
Brookes has been involved in the radio fixed-line and mobile telecommunications industry for more than 15 years. Membership of the FCS has increased more than threefold since she took the role of CEO in 2002.
Brookes was originally appointed in 1990 to manage FCS trade association projects. Her experience covers representation to government and regulators on radio spectrum competition markets and consumer issues. She has also developed self-regulatory schemes including industry codes of practice staged conferences and seminars and built up the FCS s information services.

Based in Oxfordshire Comment manages and supplies handsets to high street and non-traditional retailers around the UK such as Amazon Comet WH Smith Woolworths Littlewoods Shop Direct and Sainsburys.
But Comment managing director Michael Richardson dismissed the idea that it is a traditional distributor.
We only buy stock to order and we try to encourage direct supply from the manufacturer to our customer where appropriate he said. That tends to be at odds with the traditional distribution model.
He added: In an ideal world the customer would simply receive their phone direct from the factory cutting out all the middlemen.
The companys unaudited financial results for 2006 show a turnover of £27.4 million with pre-tax profit of £600000.

The opening was attended by Telfords mayor as well as Mainline Digital Communications managing director Andrew Boden. Geko has enjoyed a successful relationship with the Orange distributor.
The Orange-accredited business mobile specialist has expanded to employ 80 people since its formation in 2001 by local businessman and now managing director Dave Carter. There are also plans afoot to recruit up to 50 more staff this year and a further 10 at its Birmingham site.
Our move to Telford has already afforded us enhanced productivity and greater recruitment opportunities he said.
We are now in a position to welcome more staff to the team.

Brooks was formally product manager at BenQ-Siemens. His responsibilities at Unique include network approval processes for vendor placement and Tesco Mobile products
He will also be working on projects such as Uniques exclusivity deal with German VoIP-to-mobile convergence supplier IPdrums IP Voicelink product.
Brooks said: It is great to be staying in the mobile space and Unique Distribution gives me the an excellent opportunity to expand my experience and knowledge and to see a different side of the industry. If nothing else it is a great chance to play with more than one manufacturers products.
IPdrum is a palm-sized box that connects to a PC via a USB link. It contains a standard mobile SIM card while allows it to open a direct link between a mobile handset and a computer.
Users are not restricted to any particular model of phone or any extra hardware or software they just need an IPdrum box and an extra SIM card and mobile subscription.
Brooks said: The IPdrum solution connects Skype to any mobile phone allowing users true mobility as well as low cost or free international mobile calls.
Brooks claimed that using a second SIM card meant that the offering truly brings VOIP to any mobile anywhere.
Unlike all other mobile VOIP solutions the Voicelink does not rely on Wi-Fi special handsets 3G or any other limitations he added.