Expert business
The Expert Witness Institute was incorporated in 1997 as a company limited by guarantee. It provided training, made representations, and worked with other professional bodies to ensure that their members had sufficient support in acting as expert witnesses, etc.
Expert business
The Expert Witness Institute was incorporated in 1997 as a company limited by guarantee. It provided training, made representations, and worked with other professional bodies to ensure that their members had sufficient support in acting as expert witnesses, etc.
In July 1999, Customs decided that the Institute was not exempt from VAT in respect of its supplies to members. The Institute appealed saying that its supplies were exempt under Article 13A(1)(l) of European Community Directive 77/388 which exempted supplies of services made by certain non-profit making organisations, in this instance those with a civic nature.
The tribunal dismissed the appeal, so the Institute appealed to the High Court.
Mr Justice Lloyd said that the aims of the Institute were for the promotion and support of the proper administration of justice. If this was of a civic nature, then the aims of the Institute could also fall to be so described, regardless of the nature of other services provided to members. The word 'civic' meant, in addition to pertaining to a city, the relationship between citizens and the state. The administration of justice was a central activity of the state, and could be described as of a civic nature. Thus an organisation such as the Institute whose aims were concerned with the quality of the administration of justice was entitled to the exemption in Article 13A(1)(l).
The appeal was allowed.
(Expert Witness Institute v Commissioners of Customs and Excise, Chancery Division, 15 February 2001.)