Speed Read: HMRC has been challenging the recovery of VAT by companies who have to pay the professional costs of banks in M & A transactions. HMRC says that the House of Lords decision in Redrow Group does not support a culture of 'he who pays deducts'. In 2006 the Tribunal decided that Telent Plc had not received the relevant services so was not entitled to reclaim the VAT. But in 2009 the Tax Tribunal allowed an appeal by Airtours against HMRC's refusal to repay such VAT. This case has given those in dispute with HMRC new hope. Some companies may already have paid assessments incorrectly. These cases highlight a number of pitfalls and planning opportunities if VAT is considered at an early stage.
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Speed Read: HMRC has been challenging the recovery of VAT by companies who have to pay the professional costs of banks in M & A transactions. HMRC says that the House of Lords decision in Redrow Group does not support a culture of 'he who pays deducts'. In 2006 the Tribunal decided that Telent Plc had not received the relevant services so was not entitled to reclaim the VAT. But in 2009 the Tax Tribunal allowed an appeal by Airtours against HMRC's refusal to repay such VAT. This case has given those in dispute with HMRC new hope. Some companies may already have paid assessments incorrectly. These cases highlight a number of pitfalls and planning opportunities if VAT is considered at an early stage.
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:
