RECENT CASES

High Court and Above

John Wilkins (Motor Engineers) Ltd & Ors v HM Revenue & Customs [2010] EWCA Civ 923

These are appeals by 5 appellants from a decision of the Tax and Chancery Chamber of the Upper Tribunal (Mr Justice Warren, President, and Judge Colin Bishopp) dated 15 September 2009. The appeals form part of an expanding galaxy of litigation in which taxpayers, who have overpaid VAT to the respondents, the Commissioners for HM Revenue and Customs ("the Commissioners"), claim entitlement to compound interest, rather than simple interest, on those overpayments as a matter of EU and domestic law. These appeals are restricted to procedural points

Glenn & Co (Essex) Ltd), R (on the application of) v HM Revenue & Customs [2010] EWHC 1469 (Admin) (18 June 2010)

By this application for judicial review Glenn & Co (Essex) Limited ("the Claimant") seeks to challenge the legality of the conduct of the Defendant's authorised representatives in removing computers from the Claimant's premises.

Gray's Timber Products Limited v HMRC [2010] UKSC4 - (Employment related securities - market value - employee's sale proceeds governed by shareholders' agreement - amount received more than proportionate share of total proceeds on sale of company - whether rights in shareholders' agreement intrinsic or extrinsic to the shares - whether these rights personal to the shareholder - whether personal rights affect market value - whether Revenue guidance of persuasive authority).

David Baxendale Ltd v. HMRC [2009] EWCA Civ 831- This was an appeal by David Baxendale Limited against a decision of Morgan J dated 5^th February 2009 ([2009] EWHC 162 (Ch)). It concerns the correct tax treatment to be applied to the sale to members of the public of what is described as the LighterLife weight loss programme.

FJ Chalke & Anor v Revenue & Customs [2009] EWHC 952 (Ch) (Group Litigation Order - compound interest)

Revenue and Customs Commissioners v David Baxendle Ltd [2009] STC 825 (VAT - supply of goods or services - single supply or separate supplies)

Irving v. HMRC [2008] EWCA Civ 6 - This appeal is by John Leslie Irving. It is against an order of Blackburne J dated 8 February 2007 by which he dismissed Mr Irving's appeal against a decision of the Special Commissioners (John Walters QC and Howard Nolan) dated 23 March 2006. That decision was one dismissing Mr Irving's appeal against an amendment to his self-assessment to income tax for the year 1996/97 increasing his Schedule E income by £145,051.

Coombes v HMRC [2008] WTLR 439 (on ss 13 and 86 TCGA 1992)

Fleming v Customs [2006] STC 864 (VAT: whether limitation period for repayment valid absent adequate transitional provisions).

G-Con v Arnold [2006] STC 693 (Sub-contractors’ certificate: whether non-compliance “minor and technical”).

Special Commissioners and VAT Tribunals known as First-tier Tax Tribunal (from 1 April 2009)

Jigsaw Wholesale Ltd v Revenue & Customs [2010] UKFTT 164

EXCISE DUTIES – intra – community transport of excise goods in duty suspension – whether a consignment arrived at stated destination- whether a duty point within the UK was established

Singh v Revenue & Customs [2010] UKUT 174

JUDICIAL REVIEW - the concession of equitable liability - known as the noble practice - standing to bring judicial review proceedings - no

Mithras (Wine Bars) Ltd v Revenue and Customs [2010] UKUT 115

Value Added Tax - Assessment in default of proper returns by taxpayer -
Function of First-tier Tribunal - Supervisory jurisdiction wrongly applied -
Matter remitted to First-tier Tribunal to determine correct amounts of tax -
VAT Act 1995 s.73(1)

Segesta Ltd v Revenue & Customs [2010] UKFTT 235

Capital gains tax (CGT) – enterprise investment scheme (EIS) – reinvestment relief - TCGA 1992, Sch 5B – whether amount received by subscriber in relevant period was repayment  of debt or payment within Sch 5B, para 13(2) – fraud or malfeasance of agent – agent acting without authority – mistake – whether shares issued were “eligible shares”

Evans v Revenue & Customs [2010] UKFTT 140

Income tax – office holder - deductibility of expenses for travel and secretarial assistance – Appeals allowed in part

Orchid Properties (a partnership) v Revenue & Customs [2010] UKFTT 329

Procedure – application to strike out part of HMRC case – whether HMRC argument within scope of subject matter of conclusion in closure notice

Opal Carleton Ltd v Revenue & Customs [2010] UKFTT 353

VAT- reduced rate- student accommodation- whether ‘residential accommodation for students’ liable to VAT at standard rate or ‘ changed number of dwelling conversion’ liable to VAT at reduced rate – Value Added Tax Act 1994 Schedule 7A – over-arching development student accommodation – VAT at standard Rate- appeal dismissed

Williamson Tea Holdings Ltd v Revenue & Customs [2010] UKFTT 301 (TC)

Disposal of a substantial shareholding by a company - exemption from corporation tax under Sch 7AC TCGA 1992 – whether a non-compete agreement pursuant to share sale agreement and for which part of agreed share sale price had been apportioned should be treated as a separate sale or deemed disposal of goodwill and therefore taxable as a corporate chargeable gain under s.22 TCGA

Collinson v Revenue & Customs [2010] UKFTT 165 (TC)

PROCEDURE –Self Assessment Return – Notice of Enquiry given in 2001- Closure Notice applied for more than eight years after enquiry opened - Whether reasonable grounds for not issuing closure notice shown by HMRC?- No – Direction to issue Closure Notice granted

Coll & Anor v Revenue and Customs [2010] UKUT 114

CAPITAL GAINS TAX - exchange of shares for debentures - whether TCGA 1992 s 137 applies to each shareholder separately - no -whether Special Commissioner entitled to conclude that the main purpose was tax avoidance - yes - appeal dismissed

Selective Marketplace Ltd v Revenue & Customs [2010[ UKFTT 181

VALUE ADDED TAX — import VAT payable by retail customer based on customs value and less than VAT due on conventional retail sale — reduction in duty and VAT for benefit of seller — whether arrangements abusive — yes — full amount of duty and tax payable — appeal dismissed

Sceptre Services Ltd v Revenue & Customs [2010] UKFTT 247

Procedure - application to admit witness statement - expert evidence - relevance - duplication - no compelling reasons why statement should not be admitted - application allowed

University of Essex v Revenue & Customs [2010] UKFTT 162

VAT group – s 43 VATA – single taxable entity analysis – interaction with capital goods scheme when company joins group – VAT Regulations 1995, Part XV.  Refusal of application to backdate application to de-group – jurisdiction – reasonableness of HMRC decision

Elaine Bulley and Hemmer Investments Limited (formerly Stirling Scaffolding (Northern) Limited) [2010] EWHC 938 (Ch) - This case concerns the operation of the Pay As You Earn income tax system.

Mr John Evans and The Commissioners for Her Majesty's Revenue and Customs [2010] UKFTT 140 (TC) - Income tax – office holder - deductibility of expenses for travel and secretarial assistance – Appeals allowed in part

Harold Hugh Collinson v The Commissioners for Her Majesty's Revenue and Customs - Self Assessment Return - Notice of Enquiry given in 2001 - Closure Notice applied for more than eight years after enquiry opened - Whether reasonable grounds for not issuing closure notice shown by HMRC? - No - Direction to issue Closure Notice granted

Aspen Wholesale Ltd v The Commissioner for Her Majesty's Revenue and Customs (Excise Duty) [2010] UKFTT 130 (TC) - Excise Duty – Duty chargeable – Excise Duty Point – Tax warehousekeeper releasing excise goods under duty suspension arrangement for export to EU – Goods fraudulently diverted – Revocation of Registered Owner status - Whether reasonable – Yes – Assessment of duty correct – Appeal dismissed.

Enersys UK Limited v The Commissioners for Her Majesty's Revenue & Customs [2010] UKFTT 20 (TC) - default surcharge — trader with non-standard period ends — return submitted one day late because of error in determining correct date — whether reasonable excuse — no — penalty of £131,881 — whether proportionate — no — penalty incompatible with Community law principles — penalty discharged — appeal allowed.