A recent case and an old conundrum provide neat illustrations of the problems that arise when statutory provisions come into conflict, as Edward Milliner (Slaughter and May) reports.
One can usually make sense of a deeming provision when considered in its own right. Things can get trickier where two sets of deeming provisions come into play so as to produce results that are contradictory. The recent First-tier Tribunal case of The Prudential Assurance Company Ltd v HMRC (TC/2018/07480) provides a fine example of this: a supply was made within a VAT group but invoiced after de-grouping with one rule requiring the supply to be disregarded and the other deeming the supply to have occurred.
Two conflicting provisions in Prudential
The facts in the Prudential case were not particularly complicated. The taxpayer had received investment management services from SCL a company that was a member of the same...
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A recent case and an old conundrum provide neat illustrations of the problems that arise when statutory provisions come into conflict, as Edward Milliner (Slaughter and May) reports.
One can usually make sense of a deeming provision when considered in its own right. Things can get trickier where two sets of deeming provisions come into play so as to produce results that are contradictory. The recent First-tier Tribunal case of The Prudential Assurance Company Ltd v HMRC (TC/2018/07480) provides a fine example of this: a supply was made within a VAT group but invoiced after de-grouping with one rule requiring the supply to be disregarded and the other deeming the supply to have occurred.
Two conflicting provisions in Prudential
The facts in the Prudential case were not particularly complicated. The taxpayer had received investment management services from SCL a company that was a member of the same...
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:
.jpg?sfvrsn=335a554c_0 "300 x 250 (MPU)")