Barrister Etienne Wong (Old Square Tax Chambers) examines the lengthy litigation that still leaves a number of outstanding questions.
Mr Newey was a loan broker. He was established in the UK and the services he supplied to lenders were exempt. Because of this he was unable to recover the VAT he incurred on advertising services he purchased to promote his business.
To avoid this irrecoverable VAT Mr Newey restructured his business. A company Alabaster was set up in Jersey. Alabaster did not have the wherewithal itself to carry on a loan broking business so it outsourced the performance of essentially all its activities to Mr Newey who continued to operate a substantial undertaking in the UK with a substantial number of employees.
The idea was that after the restructure although exempt loan broking services would still be supplied they...
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Barrister Etienne Wong (Old Square Tax Chambers) examines the lengthy litigation that still leaves a number of outstanding questions.
Mr Newey was a loan broker. He was established in the UK and the services he supplied to lenders were exempt. Because of this he was unable to recover the VAT he incurred on advertising services he purchased to promote his business.
To avoid this irrecoverable VAT Mr Newey restructured his business. A company Alabaster was set up in Jersey. Alabaster did not have the wherewithal itself to carry on a loan broking business so it outsourced the performance of essentially all its activities to Mr Newey who continued to operate a substantial undertaking in the UK with a substantial number of employees.
The idea was that after the restructure although exempt loan broking services would still be supplied they...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
