There is no fundamental right to withhold papers which are subject to legal professional privilege, ruled the Court of Appeal in R (on the application of Morgan Grenfell & Co Ltd) v Special Commissioner of Income Tax
The taxpayer company claimed error or mistake relief under section 33, Taxes Management Act 1970 in order to use terminal losses against earlier trading profits. The Revenue refused on the grounds that a section 54 agreement existed. The Special Commissioner agreed with the Revenue, and in the High Court it was ruled that an appeal from the Special Commissioner was not to be permitted since it was not an appeal on a point of law arising in connection with the computation of profits. The Appeal Court supported this decision, and dismissed the appeal.
ALLISON PLAGER produces a potted guide to the new 100 per cent capital allowances on expenditure on converting business properties into flats.
Responsibility is power
The taxpayer carried on a car hire business. Controllers manned the telephones at the business premises, receiving taxi requests and directing drivers to the customers. The cars were owned by the drivers, who hired short-wave car radios from the business. Charges were based on a tariff, and in addition there was a fixed charge of 40 pence for each journey, described as 'job money'. The drivers kept the fare, so the only money received by the business was the radio hire money. On this basis, the business was below the VAT registration threshold.
Misappropriation?
Allison Plager dips into the National Audit Office's recently published reports on the 1999-2000 appropriation accounts of the Inland Revenue and Customs.
VAT Tribunal Cases
ALLISON PLAGER reports two recent decisions.
Fair and reasonable
The appellant, a property owning and management company registered for VAT with effect from 25 March 1994. Before January 1997, the company treated its supplies as partially exempt, and used the standard method for attributing input tax. At the end of January 1997, the company sold its existing portfolio of properties as a going concern. A month later, Customs asked the company if it was continuing to trade and should remain registered for VAT.
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