Category: VAT

Sizing up the competition – The Upper Tribunal considers the public authority VAT exemption in Northumbria Healthcare NHS Foundation Trust v Revenue and Customs – Devereux Chambers

Posted November 14th, 2023 in competition, evidence, hospitals, news, parking, VAT by sally

‘The Upper Tribunal has ruled that an NHS Trust did not provide car parking under a “special legal regime” such that its supplies would be zero-rated. The case is important because (i) it sets a limit on what can be considered a “special legal regime” for the purposes of Article 13 of the Principal VAT Directive and section 41A of the Value Added Tax Act 1994, and (ii) it confirms that detailed factual and expert evidence is not required for a Tribunal to find that treating a public authority as a non-taxable person would lead to significant distortions of competition.’

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Devereux Chambers, 27th October 2023

Source: www.devereuxchambers.co.uk

HMRC barred from proceedings for failing to meet disclosure obligations – OUT-LAW.com

Posted July 27th, 2023 in disclosure, fraud, HM Revenue & Customs, news, tax evasion, tribunals, VAT by sally

‘The First-tier Tax Tribunal has barred HM Revenue & Customs from taking any further part in proceedings against a taxpayer, Ebuyer (UK) Limited (Ebuyer), because of its failures to comply with directions – an “unless order” – issued by the tribunal.’

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OUT-LAW.com, 25th July 2023

Source: www.pinsentmasons.com

Case Comment: Moulsdale t/a Moulsdale Properties v Commissioners for His Majesty’s Revenue and Customs – UKSC Blog

Posted April 19th, 2023 in appeals, HM Revenue & Customs, news, Supreme Court, tax avoidance, taxation, VAT by sally

‘In this post, Jack Prytherch, Of Counsel in the Tax team at CMS, comments on the Supreme Court’s decision in Moulsdale t/a Moulsdale Properties v Commissioners for His Majesty’s Revenue and Customs [2023] UKSC 12, which was handed down on 22 March 2023. The issue before the Supreme Court was broadly whether a sale of property by the appellant (“Moulsdale”) should be treated as exempt from VAT under the Value Added Tax Act 1994 (“VATA”), Sch 10.’

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UKSC Blog, 19th April 2023

Source: ukscblog.com

HMRC permitted to disclose taxpayer information to another taxpayer, court finds – OUT-LAW.com

Posted March 29th, 2023 in appeals, confidentiality, disclosure, HM Revenue & Customs, news, taxation, VAT by sally

‘The Court of Appeal in London has decided that HM Revenue and Customs (HMRC) can disclose confidential information about one taxpayer to another taxpayer in the context of a tax appeal.’

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OUT-LAW.com, 27th March 2023

Source: www.pinsentmasons.com

NewsCorp Supreme Court VAT ruling has wide implications – OUT-LAW.com

Posted February 28th, 2023 in media, news, statutory interpretation, Supreme Court, VAT by sally

‘A ruling by the UK Supreme Court provides guidance on when UK legislation should be interpreted in a way that accounts for technological, scientific or societal changes that occur after the legislation has been enacted.’

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OUT-LAW.com, 27th February 2023

Source: www.pinsentmasons.com

New Judgment: DCM (Optical Holdings) Ltd v Commissioners for His Majesty’s Revenue and Customs (Scotland) [2023] UKSC 7 – UKSC Blog

Posted February 24th, 2023 in appeals, EC law, HM Revenue & Customs, media, news, Scotland, statutory interpretation, Supreme Court, taxation, VAT by sally

‘Under the Value Added Tax Act 1994 (the “VAT Act“), “newspapers” are “zero-rated”, meaning Value Added Tax (“VAT“) is not charged on them. The question in this case is whether, between 30 August 2010 – 4 December 2016 (the “relevant period“), zero-rating extended beyond print newspapers to digital editions of newspapers, such as editions for e-readers, tablets, smartphones and websites.’

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UKSC Blog, 22nd February 2023

Source: ukscblog.com

Recoverability of VAT on Costs – Guildhall Chambers

Posted January 9th, 2023 in chambers articles, costs, news, VAT by sally

‘The issue of the recoverability of VAT in the assessment of costs is unusual, but a 20% difference in the sum to be paid as a paying party can be very significant. The issue became very contentious in this case, with the RP contending in their skeleton argument that the point raised was “bizarre and bound to fail”.’

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Guildhall Chambers, 6th December 2022

Source: www.guildhallchambers.co.uk

Case Preview: News Corp UK & Ireland Limited v Commissioners for His Majesty’s Revenue and Customs – UKSC Blog

Posted November 2nd, 2022 in appeals, HM Revenue & Customs, media, news, Supreme Court, taxation, VAT by sally

‘In this post, Jack Prytherch, Of Counsel in the Tax team at CMS, previews the case of News Corp UK & Ireland Limited v Commissioners for His Majesty’s Revenue and Customs, which is scheduled to be heard on 22 and 23 November 2022.’

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UKSC Blog, 31st October 2022

Source: ukscblog.com

New Judgment: Commissioners for His Majesty’s Revenue and Customs v NHS Lothian Health Board (Scotland) 2022 UKSC [28] – UKSC Blog

Posted October 20th, 2022 in burden of proof, EC law, evidence, news, Scotland, standard of proof, Supreme Court, VAT by sally

‘This appeal concerns the correct approach to evidence and the burden and standard of proof in the context of historic claims for the recovery of input Value Added Tax (“VAT”). Input tax is the VAT incurred when the taxpayer buys in supplies which it uses for the purpose of a business activity.’

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UKSC Blog, 19th October 2022

Source: ukscblog.com

First Tier Tribunal (Tax Chamber) – Payment of Tax or Hardship Application not Required to Lodge Notice of Appeal – 23 Essex Street

Posted September 1st, 2022 in appeals, chambers articles, news, notification, repayment, taxation, VAT by sally

‘On 19 May 2017 HMRC decided that SNMP was not entitled to repayments of input tax claimed in respect of ten accounting periods and issued assessments for £312,377. That decision was later confirmed following a statutory review under sections 83A-G Value Added Tax Act 1994 (“VATA”). The solicitors for SNMP submitted a notice of appeal on 18 August 2017 but an application for hardship was not made nor had the amount in dispute been paid. As a consequence the FTT returned the appeal. The solicitors for SNMP re-submitted the appeal on 31 August 2017 but the disputed tax had still not been paid and neither had a hardship application been made. On the same date the FTT returned the appeal for the same reason as before by e-mail. Unfortunately the FTT used the wrong e-mail address for the solicitor and it was never received.’

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23 Essex Street, 25th August 2022

Source: www.23es.com

Case Preview: DCM (Optical Holdings) Ltd v Commissioners for Her Majesty’s Revenue and Customs (Scotland) – UKSC Blog

Posted May 26th, 2022 in news, Scotland, Supreme Court, time limits, VAT by sally

‘DCM is an optician that sells spectacles and provides refractive eye surgery services. Under the value added tax regime, it makes both taxable supplies of goods and exempt supplies of medical services. The dual nature of its supplies creates difficulties in calculating the amount of VAT chargeable on its supplies and input tax recoverable on its acquisitions. In fact, from at least 2000, DCM had been in dispute with HMRC over a different input tax and output tax related issue.’

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UKSC Blog, 25th May 2022

Source: ukscblog.com

New Judgment: Zipvit Ltd v Commissioners for Her Majesty’s Revenue and Customs (No 2) [2022] UKSC 12 – UKSC Blog

Posted May 12th, 2022 in EC law, news, postal service, references to European Court, Supreme Court, VAT by sally

‘This is the second judgment given by the Supreme Court in this case. In the first judgment ([2020] UKSC 15), the Court set out the background to the dispute and made a reference to the Court of Justice of the European Union, upon which judgment was delivered on the 13th of January 2022. The Supreme Court could then determine this appeal without the need for any further hearing.’

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UKSC Blog, 11th May 2022

Source: ukscblog.com

The director of an English mobile phone company, now in liquidation, has been held liable for both fraudulent trading and misfeasance for participation in missing trader intra-community (MTIC) VAT fraud. – OUT-LAW.com

Posted March 4th, 2022 in company directors, company law, fraud, misfeasance, news, telecommunications, VAT, winding up by tracey

‘The High Court upheld an application made by the liquidator of JD Group Ltd (“the company”) claiming that Deepak Bhatia, the company director, was engaged in fraudulent trading owing to knowledge that the company was associated with VAT fraud. Judge Agnello QC found that the manner in which the respective transactions were carried out provided clear evidence of this knowledge and that Bhatia’s conduct was dishonest in accordance with the objective standards of ordinary decent people.’

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OUT-LAW.com, 3rd March 2022

Source: www.pinsentmasons.com

The public law jurisdiction of the UK First-tier Tribunal in VAT cases – OUT-LAW.com

Posted October 6th, 2021 in HM Revenue & Customs, judicial review, jurisdiction, news, taxation, tribunals, VAT by sally

‘The UK’s First-tier tax Tribunal (FTT) has no general jurisdiction to judicially review decisions made by HM Revenue & Customs (HMRC), but it can consider public law arguments in some VAT appeals within its jurisdiction, the Upper Tribunal (UT) has said.’

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OUT-LAW.com, 5th October 2021

Source: www.pinsentmasons.com

UK Supreme Court: sale and leaseback did not trigger VAT clawback – OUT-LAW.com

Posted April 14th, 2021 in appeals, care homes, HM Revenue & Customs, news, Supreme Court, VAT by sally

‘The sale and leaseback of a newly constructed care home was not a disposal of the entire interest in the care home, so as to trigger a claw-back of the VAT zero-rating which had applied when the property was acquired from the developer, the UK’s Supreme Court has decided.’

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OUT-LAW.com, 13th April 2021

Source: www.pinsentmasons.com

Fairness and Adjournments: Guidance from the Court of Appeal – No. 5 Chambers

Posted March 11th, 2021 in adjournment, fraud, health, human rights, news, VAT, witnesses by sally

‘In Bilta (UK) Ltd (in liquidation) & Others v Tradition Financial Services Ltd [2021] EWCA Civ 221 the Court of Appeal examined the principles to be applied when a party seeks an adjournment because a witness is unable to attend the trial due to ill-health.’

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No. 5 Chambers, 4th March 2021

Source: www.no5.com

Case Preview: Balhousie Holdings Ltd v Commissioners for Her Majesty’s Revenue & Customs (Scotland) – UKSC Blog

Posted February 25th, 2021 in care homes, leases, news, sale of land, Scotland, Supreme Court, VAT by sally

‘In this post, Jacob Gilkes, a member of the tax team at CMS, previews the decision awaited from the UK Supreme Court in the matter of Balhousie Holdings Limited v The Commissioners for Her Majesty’s Revenue & Customs, which concerns whether a sale and leaseback transaction should be regarded for VAT purposes as a disposal by the seller of its “entire interest” in the building.’

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UKSC Blog, 25th February 2021

Source: ukscblog.com

Supplying the answer: when are statefunded services “supply of services for consideration” for VAT purposes? – Monckton Chambers

Posted January 22nd, 2021 in chambers articles, education, HM Revenue & Customs, news, VAT by sally

‘In this case note, Jack Williams of Monckton Chambers analyses the recent decision of the Upper Tribunal in Colchester Institute Corporation v HMRC [2020] UKUT 0368 (“Colchester”). In summary, in overturning the First Tier Tribunal’s decision, the Upper Tribunal held that state-funding did have a sufficient link to the provision of education and vocational training provided by a college to constitute supply of services for consideration and economic activity. Nevertheless, HMRC was entitled to set-off input tax to reduce the taxpayer’s repayment claim. The implications of the case are likely to be profound: many businesses – educational and otherwise – supplying services that are funded by state agencies are now likely to argue that their provision of services does, in fact, constitute the supply of services for consideration and economic activity. That being so, there would be no need to account for output tax on those services and any accounted for with HMRC may be recoverable.’

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Monckton Chambers, January 2021

Source: www.monckton.com

Court of Appeal rules on whether VAT is payable on top of caps on costs in Aarhus Convention claims – Local Government Lawyer

Posted January 14th, 2021 in airports, civil procedure rules, costs, news, statutory interpretation, treaties, VAT by tracey

‘The caps set out in the Civil Procedure Rules on the costs payable by losing parties in Aarhus Convention claims are inclusive of VAT, the Court of Appeal has ruled as part of the third Heathrow runway litigation.’

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Local Government Lawyer, 13th January 2021

Source: www.localgovernmentlawyer.co.uk

Former BHS owner found guilty of tax evasion as he ‘funded yacht, Bentley and luxury holiday’ – The Independent

Posted November 6th, 2020 in bankruptcy, corporation tax, insolvency, news, pensions, tax evasion, taxation, VAT by tracey

‘The former owner of BHS has been convicted of evading tax on £2.2m of income he received from buying the failed high-street chain. Instead of paying the tax he knew he owed, Dominic Chappell, 53, spent a fortune on a luxury lifestyle that included a £90,000 yacht, a Bentley Continental car, a Bahamas holiday and some expensive Beretta guns, Southwark Crown Court heard.’

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The Independent, 5th November 2020

Source: www.independent.co.uk