Kamlesh Chauhan comments on the implications of the third GMAC case, focusing on the impact of the decision for businesses and the potential for retrospective claims
Recap of the GMAC cases
The latest case is the third case concerning the amount of VAT accounted for on cars sold by General Motors Acceptance Corporation UK Plc: GMAC UK plc v HMRC [2010] UKFTT 202 (TC). The cars in question were sold under hire purchase (HP) agreements subsequently repossessed (due to non-payment) and then resold.
In the first case the High Court ruled in 2004 that on the sale of repossessed HP cars GMAC was entitled to adjust the output tax due to the reduced sale proceeds when the HP agreement was terminated whether or not the termination was due to a customer breach. It was also determined that certain elements of the amounts outstanding constituted bad...
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Kamlesh Chauhan comments on the implications of the third GMAC case, focusing on the impact of the decision for businesses and the potential for retrospective claims
Recap of the GMAC cases
The latest case is the third case concerning the amount of VAT accounted for on cars sold by General Motors Acceptance Corporation UK Plc: GMAC UK plc v HMRC [2010] UKFTT 202 (TC). The cars in question were sold under hire purchase (HP) agreements subsequently repossessed (due to non-payment) and then resold.
In the first case the High Court ruled in 2004 that on the sale of repossessed HP cars GMAC was entitled to adjust the output tax due to the reduced sale proceeds when the HP agreement was terminated whether or not the termination was due to a customer breach. It was also determined that certain elements of the amounts outstanding constituted bad...
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:
