Indirect Tax Update 29/2014
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The document summarizes two recent indirect tax cases. In the first case, the Court of Appeal ruled that accountancy services provided to a travel company during financial restructuring were actually provided to creditor banks, not the company, so the company could not reclaim input VAT. In the second case, the First-tier Tribunal ruled against a home builder's claim that it could reclaim VAT on white goods installed in new homes, finding the UK's VAT "blocking" legislation applied. The decisions emphasize considering who services are provided to for VAT purposes and that litigation over large sums, like the £30 million at issue in the second case, will likely continue.
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3) This publication is intended as guidance only and Grant Thornton UK LLP accepts no responsibility for any loss resulting from reliance on its content.
Indirect Tax Update 22/2014
HMRC has issued another update on VAT and pension schemes following recent court rulings. The update says that HMRC will provide further guidance in the autumn on how the new VAT policy will apply regarding costs incurred by employers on pension schemes and whether defined contribution schemes can be considered special investment funds. The previous guidance from HMRC caused issues by not properly consulting industry representatives first. Further announcements are expected later in the year to clarify the VAT implications of pension scheme costs and management based on the recent court judgments.
Indirect Tax Update 40/2014
The Upper Tribunal upheld the First-tier Tribunal's decision that the taxpayer failed to demonstrate that paying the disputed tax would cause hardship. As a result, the taxpayer must either pay the tax or withdraw its appeal. This case concerned VAT payments on mobile phones in 2006. HMRC claimed the phone model was not actually available then and assessed the taxpayer to recover the VAT. After years of litigation over hardship appeal rights, the Upper Tribunal dismissed all of the taxpayer's arguments, agreeing with the First-tier Tribunal's original decision. The taxpayer may now either pay the tax or withdraw its appeal.
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ITU 03/2017
HMRC responded to concerns raised in its Making Tax Digital consultation. It will allow continued spreadsheet use, quarterly reporting for some businesses, and free software. Charities will be exempt and partnerships above £10M have a deferred start until 2020. Commentators say HMRC is listening to stakeholders but businesses should still prepare for changes.
A European court case determined that a holding company cannot reclaim VAT without making charges for management services, as there was no economic activity.
Another DIY builder's VAT refund claim was rejected because planning permission did not allow for separate dwelling use, a legal requirement.
Indirect Tax Update 19/2015
HMRC has issued a brief responding to two recent court losses on VAT issues. It does not agree with a Court of Appeal decision that compound interest is owed on VAT refunds and will seek to appeal to the Supreme Court. It also lost an appeal at the Upper Tribunal regarding input VAT recovery for management fees related to the University of Cambridge's endowment fund. The Upper Tribunal affirmed the fees were overhead costs for the University's non-business activities.
ITU 02/2018
The document provides summaries of three court cases related to indirect tax:
1) The CJEU ruled that a Slovenian taxpayer must adjust its input tax deduction after a court ordered the taxpayer to pay only 44% of debts owed to creditors.
2) The CJEU ruled that the compulsory transfer of property from a Polish municipality to the state in exchange for compensation constituted a taxable supply for VAT purposes.
3) The UK Upper Tribunal largely upheld a previous ruling that a UK house builder could not reclaim input tax on "white goods" supplied as part of new home construction, with a minor exception for cooker hoods supplied between 1982-1984.
ITU 20/2016
1) The Upper Tribunal ruled that the transfer of a business into a VAT group can qualify as a transfer of a going concern (TOGC), meaning no VAT is due. This contradicted HMRC's previous policy.
2) HMRC has now reversed its policy in line with the Upper Tribunal's ruling, stating in Revenue & Customs Brief 11/2016 that transfers into and out of a VAT group can be TOGCs if certain conditions are met.
3) A First-tier Tax Tribunal case involved a company that paid VAT on wind turbines from a supplier that went into administration before delivering the goods. The tribunal ruled the company could not reclaim the VAT since the turbines were not supplied.
ITU 32/2015
The UK Court of Appeal referred the long-running Mercedes-Benz Financial Services VAT case to the Court of Justice of the European Union to determine the meaning of "in the normal course of events" regarding whether a supply is of goods or services. A decision is not expected for several years. Additionally, the CJEU clarified import classification for temperature indicators, and the UK Tax Tribunal upheld two HMRC demands for security payments as conditions for taxpayers to continue trading, finding HMRC acted reasonably given the companies' histories.
ITU 22/2016
This document summarizes three indirect tax cases:
1) ING Intermediate Holdings Ltd lost its £6 million input VAT claim after the Upper Tribunal ruled that ING provided banking services to its customers for consideration, making the services exempt from VAT recovery.
2) The Court of Appeal ruled against ELS Group in claiming retrospective use of the staff-hire concession, agreeing with HMRC that the concession requires an election at the time.
3) The First-Tier Tax Tribunal ruled that a fulfillment house could not reclaim over £500,000 in import VAT because the imported goods did not belong to the fulfillment house but to the overseas suppliers.
ITU 10/2016
The document summarizes two key developments from the past week:
1) A Court of Justice ruling found that claims handling services provided to an insurer are not exempt from VAT as insurance transactions or related services. UK law will need to change and businesses providing these services should review their VAT position.
2) The UK budget announced new powers for HMRC to make online marketplaces jointly liable for VAT debts of overseas sellers on their platforms. This aims to reduce the estimated £365 million annual VAT loss from non-compliant foreign traders. Online portals will need to strengthen due diligence of sellers.
ITU 332015
The First-tier Tax Tribunal issued a controversial decision ruling that VAT is due on the full consideration received by Adecco UK Ltd and others for supplying temporary workers to clients, contradicting an earlier similar case. The Court of Appeal decided to refer the Brockenhurst College case on whether supplies of catering and performances are 'closely related' to education to the European Court of Justice for guidance. The FTT also ruled in the golf clubs unjust enrichment case that 90% of VAT claims made should be repaid, constituting a major victory for the golf clubs against HMRC's position.
Case Alert: African Consolidated Resources plc (TC03705) & Norseman Gold plc ...
The First-tier Tribunal has issued two comparable, but separate, decisions relating to the provision of management services to overseas subsidiaries by two UK VAT registered holding companies within the mining industry. The issue in both cases was whether the provision of loan finance and management services by the holding company to its overseas subsidiaries amounted to an economic activity and the making of taxable supplies, such that the holding company was eligible for UK VAT registration and subsequent input tax recovery.
African Consolidated Resources plc (TC03705) Norseman Gold plc (TC03698)Afric...
The First-tier Tribunal issued two decisions regarding UK VAT registered holding companies in the mining industry providing management services to overseas subsidiaries. In both cases, the Tribunal concluded that while the supplies were capable of being an economic activity, as no consideration was received for the services, there was no taxable supply. For Norseman Gold plc, services provided to subsidiaries failed to establish a price or obligation to pay, and for African Consolidated Resources plc, services billed at a fixed fee were not actually paid. Loan funding by African Consolidated Resources also did not constitute an economic activity. The decisions highlight the need for businesses to ensure their VAT position is agreed with HMRC.
Case alert - Zipvit Ltd
The Court of Appeal has issued a unanimous judgment in the appeal by Zipvit Ltd (Zipvit) against the judgment of the Upper Tribunal. Zipvit, like many other businesses, contracted with Royal Mail to supply delivery services. At the relevant time, these services were treated by Royal Mail, Zipvit and HMRC as being exempt from VAT under the UK’s implementation of the ‘postal services’ exemption.
However, following the Court of Justice judgment in the ‘TNT’ case in 2009 (which ruled that VAT exemption only applied to universal postal services), it became clear to all parties (including HMRC) that the mailmedia service provided by Royal Mail should have been liable to VAT at the standard rate.
On that basis, Zipvit submitted a claim for a refund of the input VAT purportedly included in the price it had paid to Royal Mail. HMRC rejected that claim and Zipvit appealed to the First-tier Tax Tribunal (FTT). The FTT dismissed the appeal as did the Upper Tribunal.
Now, the Court of Appeal has dismissed Zipvit’s appeal. The judgment issued on 30 June 2018 dismisses the appeal on the basis that Zipvit had no valid VAT invoice to support its claim. A fact regarded as a fatal flaw.
Tax and the city - September
New figures indicate increased tax receipts from the banking sector. HMRC continues to pursue avoidance transactions through the courts, narrowly missing out on victory in Lloyds TSB Equipment Leasing but successfully challenging yet another PAYE and NICs scheme in Tower Radio. High risk promoters of these sorts of schemes face tougher sanctions under new proposals.
ITU 30/2016
The Upper Tribunal ruled against B&M Retail in their excise duty case against HMRC. While a duty point may have occurred earlier in the supply chain, B&M could not provide evidence that excise duty had been paid previously. As such, B&M was found liable to pay over £5.8 million in excise duty and penalties assessed against them by HMRC. The Tribunal also ruled against a taxpayer in a case involving VAT on stall rentals at craft fairs, finding the supply was of the right to attend the fair, not of land. Finally, in an input VAT reclaim case, the Tribunal found HMRC had acted unreasonably in refusing alternative evidence of payment besides invalid VAT invoices
ITU 07/2017
The Upper Tribunal issued two judgments this week regarding VAT cases. In the first case, Adecco lost its appeal against HMRC in its battle over how VAT applies to the supply of temporary workers. The Tribunal found that Adecco makes a supply of workers to its clients and VAT is due on the full fees paid. In the second case, U-Drive lost its appeal against HMRC regarding reclaiming VAT on vehicle repairs, as the Tribunal found the economic reality was that the repair supply was made to the vehicle owners, not U-Drive. HMRC also issued two consultations this week proposing a "split payment" system for overseas online sellers and a reverse charge for supplies in the construction industry.
ITU 31/2016
The Court of Justice ruled that Germany could not deny VAT exemption for the transfer of a vehicle from Germany to Spain by a taxpayer simply because the taxpayer failed to include a VAT number on the invoice, as long as the substantive requirements for exemption were met. The failure to comply with this formal requirement should not prevent exemption from being available, unless tax evasion was suspected. The German law preventing exemption due to missing a VAT number on the invoice violated the purpose of the VAT Directive.
Additionally, the Upper Tribunal affirmed that for VAT groups in the UK, the representative member of the group is entitled to receive any VAT refunds, even if another group member made the supplies and initially overpaid VAT. Individual group members cannot claim refund
ITU 17/2016
The Court of Justice ruled against Bookit Ltd and the National Exhibition Centre (NEC) in two cases involving VAT exemption on card handling and payment processing fees. The Court determined that the taxpayers' actions in processing card payments and exchanging payment information did not constitute a financial service under the VAT Directive since they did not directly debit or credit accounts. As a result, the fees were subject to VAT rather than exempt. This ruling went against the taxpayers' arguments and means they and other businesses must pay VAT on similar card handling income.
ITU 03/2016
The Upper Tribunal issued three decisions this week:
1. It allowed HMRC's appeal in the Wakefield College case, overturning the earlier decision that a new building qualified for VAT zero-rating. The Tribunal found that where students paid full fees, the education provided was a business activity.
2. It allowed Find My Past Ltd's appeal, finding that credits purchased were not pre-payments for future access but "face-value vouchers" so VAT was only due when redeemed, allowing refunds for unused credits.
3. The Court of Justice ruled that Belgium could view a for-profit organization providing assisted housing for the elderly as "charitable" and exempt its welfare services from VAT based on
2015 case review: High ATO auccess rate continues
This document summarizes tax judgments from the Federal Court, Full Federal Court, and High Court of Australia from January to December 2015. It shows that the ATO was highly successful in 2015, winning 76.5% of cases, continuing an improving trend over the past five years due to stronger case selection and management. The summary also analyzes key cases, particularly in financial services, and notes some cases where taxpayers appealed decisions.
ITU 11/2016
The document summarizes three cases from the First-tier Tax Tribunal and Upper Tribunal:
1) The First-tier Tribunal upheld a £59,000 civil evasion penalty against a fish importer for failing to declare imports from Norway and avoiding £300,000 in customs duties. The Tribunal found the failure was deliberate and dishonest.
2) The First-tier Tribunal upheld a 60% civil evasion penalty against a taxpayer who claimed £34,000 in input VAT but provided no records to substantiate the claims during an HMRC inquiry.
3) The Upper Tribunal dismissed HMRC's appeal involving a Scottish farmer who purchased farm subsidy entitlement units. The Tribunal found the units were purchased for business purposes,
ITU 21/2016
The Upper Tribunal considered two cases related to VAT. In the first case, Zipvit lost its appeal in claiming VAT reimbursement from Royal Mail. The Upper Tribunal determined that without a valid VAT invoice, Zipvit had no right to reclaim input tax, even though VAT may have been properly chargeable. In the second case, the First-Tier Tribunal ruled that denying the same VAT exemption for welfare services to a for-profit organization as granted to charities violated the EU principle of fiscal neutrality. Additionally, the Upper Tribunal dismissed HMRC's appeal in the Imperial College case, requiring HMRC to abide by the terms of its original special VAT reimbursement agreement with universities.
Similar to Indirect Tax Update 29/2014 (20)
Case Alert: African Consolidated Resources plc (TC03705) & Norseman Gold plc ...
Case Alert: African Consolidated Resources plc (TC03705) & Norseman Gold plc ...
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ITU 10/2018
The document summarizes three recent court cases related to indirect tax:
1) The Court of Justice of the European Union ruled that a holding company letting property to its subsidiary constituted involvement in management, allowing the holding company to reclaim input tax on acquisition costs.
2) The UK Supreme Court ruled that a company that left a VAT group was not acting as an agent of the group when it later claimed a VAT refund, and thus the representative member of the VAT group was not entitled to the refund.
3) The UK Court of Session ruled that the supply of temporary modular classrooms was a taxable service, not a supply of an interest in land that would be VAT exempt, as the company had no interest in
ITU 07/2018
The document summarizes several indirect tax cases from the UK.
The first case discusses an Advocate General's opinion in a case referred to the Court of Justice by the Irish Supreme Court involving Ryanair's attempt to reclaim VAT fees from an unsuccessful takeover bid of Aer Lingus. The Advocate General believes Ryanair is entitled to reclaim the VAT.
The second case discusses a First-Tier Tax Tribunal case involving Marks & Spencer's "Dine In for £10 with free wine" promotion. The tribunal agreed with HMRC that VAT was due on the wine as customers paid for a package including the wine.
The third case discusses a First-Tier Tax Tribunal case involving a Guern
Case alert: Summit Electrical Installations Ltd Upper Tribunal Judgment
Whether services can be zero-rated when supplied to a main contractor. Whether planning restrictions on occupation prevents zero-rating
ITU 08/2018
The document summarizes two recent indirect tax cases in the UK:
1) HMRC v Summit Electrical Installations Ltd - The Upper Tribunal dismissed HMRC's appeal and agreed with the First-tier Tax Tribunal's decision that the taxpayer could zero-rate its electrical installation services for a new student accommodation building, as the building qualified as a dwelling under VAT law.
2) Bratt Autoservices Ltd - The Court of Appeal dismissed the taxpayer's appeal and agreed with the Upper Tribunal that the taxpayer's 2009 VAT repayment claim was not valid because it did not allocate amounts to the taxpayer's prescribed accounting periods as required by VAT law.
ITU 09/2018
The document summarizes three recent indirect tax cases:
1) Wetheralds Ltd - The Upper Tribunal ruled that a thermally efficient roofing system was a supply of a new roof rather than insulation materials, and was thus subject to the standard VAT rate of 20% rather than the reduced 5% rate.
2) Abbotsley Ltd - The Upper Tribunal confirmed that affiliation fees paid by proprietary golf clubs to golf associations were exempt from VAT as being essential to sport.
3) Hutchison 3G UK Ltd - The First-tier Tax Tribunal dismissed H3G's argument that the tax point for mobile phone contracts should be when services are used rather than when monthly payments are received.
ITU 06/2018
The document provides summaries of three recent court rulings related to indirect tax:
1) The Advocate General issued an opinion in Volkswagen Financial Services v HMRC, finding that vehicle financing arrangements constitute a single taxable supply of a vehicle, entitling the company to full VAT recovery on overheads. This contradicts the UK's view of separate taxable and exempt supplies.
2) The Court of Appeal ruled against Wakefield College in its claim that education provided to students paying partial fees due to financial hardship was not an "economic activity" subject to VAT, as the partial fees constitute remuneration rather than consideration.
3) The Upper Tribunal dismissed HMRC's argument that payments by Marriott
Case Alert - University of Cambridge
The document summarizes a court case between the University of Cambridge and HMRC regarding whether the University can reclaim VAT incurred on fund management fees. The University operates an endowment fund managed by a third party, which charges fees. The University argues these fees are overheads that can be partially reclaimed under its partial exemption special method. HMRC argues the fees are consumed by investment activities and not reclaimable. Lower courts sided with the University, but the Court of Appeal referred the case to the European Court of Justice for guidance on interpreting relevant VAT directives and prior cases.
Vat Alert - Cost Sharing Groups
HMRC has announced changes to the UK's VAT rules relating to cost sharing groups (CSGs) following recent judgments from the Court of Justice of the European Union. The changes mean the VAT exemption for CSGs will now only apply to entities providing certain public interest services listed in the VAT Directive, such as postal, education, and health services. Banking and insurance entities are no longer eligible. HMRC will also restrict CSG membership to UK entities and require recharges to members be made only at cost. Entities correctly applying previous guidance have until the end of May 2018 to comply with the new rules.
ITU 05/2018
HMRC revises its policy in relation to cost sharing groups following judgments from the Court of Justice. Specifically, HMRC will no longer allow the cost sharing exemption for financial and insurance businesses as the Court of Justice ruled the exemption is not available to these sectors. HMRC will provide a two month transition period for affected businesses to regularize their VAT positions. Additionally, the Court of Appeal case involves determining whether VAT on fund management services provided to the University of Cambridge's endowment fund can be attributed to the overall activities of the University.
Case Alert - Wakefield College - Court of Appeal
The Court of Appeal unanimously dismissed Wakefield College's appeal of a decision that denied VAT zero-rating for the construction of a new college building. While most of the College's students either paid no or subsidized fees, the Court found this still constituted consideration for education and made it an economic activity, precluding VAT zero-rating. The Court distinguished consideration under VAT Directive Article 2 from remuneration under Article 9, finding the College's activities were remunerated and economic in nature. This clarified that satisfying Article 2's consideration test does not automatically deem an activity non-economic under Article 9. The College's attempt to analogize to a prior legal aid case was rejected.
Case alert - Ryanair - Advocate General's opinion
This summary provides the key details from the document in 3 sentences:
The document discusses an Advocate General's opinion in a case referred to the Court of Justice of the European Union concerning whether the Irish airline Ryanair was entitled to reclaim VAT incurred on professional fees relating to its failed 2006 bid to acquire rival airline Aer Lingus. The Advocate General considers that Ryanair is entitled to reclaim the input VAT, both because there was an intention to provide management services and because the cost of acquiring Aer Lingus shares was to directly and permanently extend Ryanair's taxable air passenger transport services business. This is the case even though the takeover bid was ultimately blocked and the management services were not provided.
ITU 06/2018
The document provides summaries of three recent court rulings related to indirect tax:
1) The Advocate General issued an opinion in Volkswagen Financial Services v HMRC, finding that vehicle financing arrangements constitute a single taxable supply of a vehicle, allowing the company to recover input tax on overheads.
2) The Court of Appeal ruled against Wakefield College in its claim that education provided to students paying partial fees was not an economic activity for VAT purposes, as the partial fees constitute consideration.
3) The Upper Tribunal dismissed HMRC's argument that payments by Marriott Rewards to redeeming hotels were third party consideration, but also ruled that neither Marriott nor Whitbread established the UK or US
Case Alert - Marks & Spencer
This document discusses a case regarding a promotional offer by Marks & Spencer (M&S) where customers could purchase three food items for £10 and receive a free bottle of wine. HMRC considered that the deal was actually for four items for £10 and that VAT should be paid on the portion of the £10 attributable to the wine. The First-tier Tax Tribunal agreed with HMRC's view, finding that the economic reality was a package deal rather than items plus a free gift. It determined that the £10 payment should be apportioned with VAT paid on the wine portion. The Tribunal emphasized examining the commercial substance of promotions for accurate VAT determination.
Case Alert - Marriott Rewards / Whitbread - Upper Tribunal
The Upper Tribunal issued a judgment regarding the VAT treatment of payments made through Marriott's customer loyalty rewards scheme. The Tribunal determined that payments from Marriott Rewards LLC to participating hotels were consideration for redemption services provided to MRL, rather than third-party consideration for accommodation supplied to customers. It also found that these redemption services constituted a supply of services related to land in the UK, rather than advertising services, meaning UK VAT was due. Both MRL and Whitbread's appeals were dismissed.
ITU 04/2018
The document provides updates on recent indirect tax cases from the UK courts, CJEU, and Brexit developments.
The CJEU issued an opinion in DPAS Ltd, finding that DPAS's service of collecting payments from patients and transferring them to dentists was not exempt from VAT as a payment transaction, but rather a taxable debt collection service, even though the contracts were amended to provide the service to patients rather than dentists.
The CJEU also ruled in a case from Slovakia that when a supplier issues supplementary VAT invoices to correct an underpayment of VAT, the time limit for claiming VAT refunds should run from the date of the supplementary invoices, not the original supplies.
Finally,
Case Alert DPAS Ltd - Advocate General's opinion
Whether collection of direct debits constitutes a transaction concerning payments or transfers and exempt from VAT - AG considers not
Brexit Alert
This document summarizes an agreement reached between the UK and EU to establish a transitional period after Brexit. Key points include:
- The UK will leave the EU in March 2019 but remain in the single market and customs union until December 2020.
- Goods moving between the UK and EU during this period will be treated as intra-EU trade in regards to customs and VAT.
- The agreement provides businesses more certainty and time to prepare for changes taking effect after the transitional period ends. However, the deal still requires approval from all EU member states.
Case Alert: Kreuzmayr CJEU Judgment
CJEU issues judgment on place of supply issue relating to two supplies but a single transportation - Also deals with recovery of incorrectly charged input VAT
ITU 03/2018
The document summarizes three indirect tax cases:
1) A CJEU case regarding whether payments for credits on an online auction site constitute a preliminary transaction or payment for goods. The Advocate General found credits enabled participation and were a taxable supply of services.
2) The European Commission issued proceedings against Cyprus, Greece, Malta, and the UK for alleged non-compliance with EU VAT law regarding yacht VAT schemes and financial derivatives.
3) A UK tax tribunal case examined whether a property transfer qualified for VAT exemption as a transfer of a going concern. The tribunal found conditions were met for one property but not three others.
Case alert - Boehringer Ingleheim Pharma CJEU Judgment
This document summarizes a court case from the Court of Justice of the European Union regarding the calculation of value-added tax (VAT) on supplies of pharmaceutical products where the initial price is later reduced. The taxpayer, Boehringer Ingelheim Pharma GmbH & Co KG, manufactures and supplies medications to pharmacies in Germany via wholesalers. For supplies covered by public health insurance, Boehringer reimbursed discounts provided to insurance funds, and the tax authority allowed Boehringer to reduce the taxable value. However, for private insurance, similar reimbursements were not allowed as a reduction. The Court ruled that the principle of equal treatment requires both arrangements be treated the same for VAT - where the final
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Case alert: Summit Electrical Installations Ltd Upper Tribunal Judgment
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Case Alert - Marriott Rewards / Whitbread - Upper Tribunal
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Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
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◇需要报考公务员、购买免税车、落转户口
◇申请留学生创业基金
留信网认证的作用:
1:该专业认证可证明留学生真实身份
2:同时对留学生所学专业登记给予评定
3:国家专业人才认证中心颁发入库证书
4:这个认证书并且可以归档倒地方
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8:在国家人才网主办的国家网络招聘大会中纳入资料，供国家高端企业选择人才
Independent Study - College of Wooster Research (2023-2024)
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
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Using Online job postings and survey data to understand labour market trends
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Indirect Tax Update 29/2014
- 1. Indirect Tax Update for week ending 25 July 2014 Just when we thought the indirect tax world was going quiet for the summer holidays, two important decisions are released in the same week. Firstly, The Court of Appeal has dismissed the appeal of Airtours in connection with input tax on accountancy charges and the First-tier Tribunal has ruled against Taylor Wimpey in relation to the recovery of input tax on white goods installed in new dwellings. In the Airtours case (formerly My Travel), the taxpayer had paid substantial fees to an accountancy firm in connection with work undertaken in respect of a financial restructuring exercise. In 2001 Airtours faced a financial crisis that threatened the continuation of its business and its own existence. It was indebted to a number of parties and, in order for its auditors to be able to issue a non-qualified audit opinion, the auditors required comfort that those creditors (the ‘Engaging Institutions’) would extend existing credit facilities beyond the original terms. PwC was engaged to provide services with a view to ultimately enabling the Engaging Institutions to continue to provide such credit. The question before the Court was whether PwCs services were provided to Airtours or the Engaging Institutions. In a majority verdict, the Court has found that the services provided by PwC were, in fact, provided to the banks. As a result, Airtours was unable to reclaim the input VAT in question. Comment – The decision emphasises the importance of considering to whom services are being provided and ensuring that contracts reflect the economic and commercial reality of the work being undertaken. It is important to consider the recoverability of VAT on transaction costs early in the transaction process. As for Airtours, given that there was one dissenting Judge, one would expect that this case may yet be appealed further. In Taylor Wimpey, the First-tier Tribunal has reached a preliminary decision on whether VAT incurred on the installation of 'white goods' (fridges and freezers etc) by builders of new houses can be reclaimed. The UK operates 'blocking' legislation which prevents such recovery. Taylor Wimpey argued that the input tax 'block' did not apply as the goods were not 'incorporated' into dwellings. Alternatively, if they were so incorporated, they were articles of a kind which were, (or had become over the years since the law was drafted) ordinarily installed by house builders. The Tribunal dismissed both of these arguments. Comment – A blow to Taylor Wimpey and a number of other cases that are stood behind it. Given the sums involved here (approximately £30 Million), one cannot imagine that this is the end of the litigation. For further information in relation to any of the issues highlighted in this Indirect Tax Update please contact: London/South East Karen Robb karen.robb@uk.gt.com The Regions Stuart Brodie stuart.brodie@uk.gt.com The Midlands Mike Sheppard mike.sheppard@uk.gt.com © 2014 Grant Thornton UK LLP All rights reserved ‘Grant Thornton’ means Grant Thornton UK LLP, a limited liability partnership Grant Thornton UK LLP is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. Services are delivered by the member firms. GTIL and its member firms are not agents of, and do not obligate, one another and are not liable for one another's acts or omissions. This publication has been prepared only as a guide. No responsibility can be accepted by us for loss occasioned to any person acting or refraining from acting as a result of any material in this publication. www.grant-thornton.co.uk Indirect Tax Update 29/2014