Chris Colford provides HMRC’s perspective on the recent decisions in Weald Leasing and RBS Deutschland
This article considers two recent European Court precedents: RBS Deutschland GmbH (Case C-277/09) and Weald Leasing Ltd (Case C-103/09).
Background
In the mid to late 1990s VAT avoidance was quite well established in some sectors. Leases featured in a high proportion of arrangements which were intended either to spread the irrecoverable VAT on capital purchases over a number of years or to reduce it in absolute terms. Arrangements of this kind were developed at a time when it was widely assumed that there was no limit on the degree of artificiality that could be introduced into a VAT saving scheme so long as it was contractually robust and so long as no provision or precedent had been overlooked when it came to analysing the VAT consequences of the arrangement. In other words it...
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Chris Colford provides HMRC’s perspective on the recent decisions in Weald Leasing and RBS Deutschland
This article considers two recent European Court precedents: RBS Deutschland GmbH (Case C-277/09) and Weald Leasing Ltd (Case C-103/09).
Background
In the mid to late 1990s VAT avoidance was quite well established in some sectors. Leases featured in a high proportion of arrangements which were intended either to spread the irrecoverable VAT on capital purchases over a number of years or to reduce it in absolute terms. Arrangements of this kind were developed at a time when it was widely assumed that there was no limit on the degree of artificiality that could be introduced into a VAT saving scheme so long as it was contractually robust and so long as no provision or precedent had been overlooked when it came to analysing the VAT consequences of the arrangement. In other words it...
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