Tarlochan Lall reviews the recent Tribunal decision in Shop Direct and considers when VAT repayments are trading receipts.
The First-tier Tribunal’s decision in Shop Direct and others v HMRC [2012] UKFTT 128 (TC) needs to be considered with reference to underlying analysis of the relevant VAT repayments in order to assess its authoritative status.
Overview of the FTT’s decision
The appellants obtained refunds of VAT which had been paid incorrectly together with interest on the refunded amounts. The case concerns the direct tax treatment of the refunds and the interest. The appellants unsuccessfully claimed that both categories of payments were not taxable.
The appellants essentially argued that the nature of the repayments was such that they were not from any taxable source. Their case that the VAT repayments were free from tax as payments made under statute or as gifts ...
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Tarlochan Lall reviews the recent Tribunal decision in Shop Direct and considers when VAT repayments are trading receipts.
The First-tier Tribunal’s decision in Shop Direct and others v HMRC [2012] UKFTT 128 (TC) needs to be considered with reference to underlying analysis of the relevant VAT repayments in order to assess its authoritative status.
Overview of the FTT’s decision
The appellants obtained refunds of VAT which had been paid incorrectly together with interest on the refunded amounts. The case concerns the direct tax treatment of the refunds and the interest. The appellants unsuccessfully claimed that both categories of payments were not taxable.
The appellants essentially argued that the nature of the repayments was such that they were not from any taxable source. Their case that the VAT repayments were free from tax as payments made under statute or as gifts ...
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If you do not subscribe but are a registered user, please enter your details in the following boxes:
