Company selling goods by mail order: part of proceeds donated to charity
In Findel plc v HMRC (TC01560 – 28 November) a company (E) sold goods by mail order. Its catalogues indicated that part of the proceeds would be donated to charity. Initially it accounted for VAT on the full amount of its takings but it subsequently submitted a substantial repayment claim on the basis that it should not have accounted for VAT on the amounts which it passed to charity. HMRC rejected the claim and the representative member of E’s group appealed. The First-tier Tribunal dismissed the appeal. Judge Demack specifically declined to follow the earlier decisions in Patrick [1994] VATTR 247 (VTD 12354) or EMAP MacLaren Ltd QB [1997] STC 490 and held that both cases had been wrongly decided. (With regard to the EMAP MacLaren...
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Company selling goods by mail order: part of proceeds donated to charity
In Findel plc v HMRC (TC01560 – 28 November) a company (E) sold goods by mail order. Its catalogues indicated that part of the proceeds would be donated to charity. Initially it accounted for VAT on the full amount of its takings but it subsequently submitted a substantial repayment claim on the basis that it should not have accounted for VAT on the amounts which it passed to charity. HMRC rejected the claim and the representative member of E’s group appealed. The First-tier Tribunal dismissed the appeal. Judge Demack specifically declined to follow the earlier decisions in Patrick [1994] VATTR 247 (VTD 12354) or EMAP MacLaren Ltd QB [1997] STC 490 and held that both cases had been wrongly decided. (With regard to the EMAP MacLaren...
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