Stephen Morse Assistant Taxation Director at Barclays Bank plc analyses Customs & Excise's proposal to rewrite the VAT grouping eligibility test
Customs & Excise have issued a consultation document which sets out their intention to tighten the eligibility test for companies wishing to join and remain in a VAT group. The proposal set out in 'Tackling VAT Group Abuses' is designed to counter what Customs perceive to be ongoing 'unacceptable tax avoidance' using VAT groups by the finance and insurance sectors.
In light of Customs' existing statutory powers to refuse grouping compulsorily de-group companies and generally recharacterise transactions involving groups and grouping together with helpful and powerful anti-avoidance precedents including Thorn Materials[1998] STC 725 and BUPA Purchasing[2003] STC...
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Stephen Morse Assistant Taxation Director at Barclays Bank plc analyses Customs & Excise's proposal to rewrite the VAT grouping eligibility test
Customs & Excise have issued a consultation document which sets out their intention to tighten the eligibility test for companies wishing to join and remain in a VAT group. The proposal set out in 'Tackling VAT Group Abuses' is designed to counter what Customs perceive to be ongoing 'unacceptable tax avoidance' using VAT groups by the finance and insurance sectors.
In light of Customs' existing statutory powers to refuse grouping compulsorily de-group companies and generally recharacterise transactions involving groups and grouping together with helpful and powerful anti-avoidance precedents including Thorn Materials[1998] STC 725 and BUPA Purchasing[2003] STC...
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)")