Source: All England Reporter
Publisher Citation: [2012] All ER (D) 72 (Aug)
Neutral Citation: [2012] UKUT 278 (TCC)
Court: Upper Tribunal (Tax and Chancery Chamber)

Warren J and Judge Charles Hellier

Representation Paul Lasok QC and Eleni Mitrophanous (instructed by the General Counsel and Solicitor to the Revenue and Customs Commissioners) for the Revenue and Customs Commissioners.
  Roderick Cordara QC and Jessica Wells (instructed by KPMG LLP) for GMAC.
  Roderick Cordara QC and Lyndsey Frawley (instructed by BT Legal) for BT.
Judgment Dates: 3 August 2012


Value added tax - Bad debt relief - Time limits - Taxpayers seeking bad debt relief - First-tier Tribunal (FTT) finding domestic conditions for relief invalid under European Union law - FTT finding UK provisions not curtailing first taxpayer's EU rights - FTT finding first taxpayer's claim not time barred - Revenue and Customs Commissioners appealing - Second taxpayer seeking determination of preliminary questions - Whether property and insolvency conditions being valid - Whether first taxpayer being prevented from relying on EU law - Whether first taxpayer's claim being time barred - Whether second taxpayer's claims being barred - Whether UK provision falling to be disapplied or construed under EU law not affecting second taxpayer's rights under EU law - Whether UK limitation periods applying to second taxpayer's claim - Value Added Tax Act 1983, s 22 - Value Added Tax (Cars) Order 1992, - Value Added Tax Regulations 1995, - Sixth Council Directive (EEC) 77/388, art 11C(1).

The Case

Value added tax Bad debt relief. The Upper Tribunal (Tax and Chancery Chamber) held that property and insolvency conditions for domestic bad debt relief under s 22 of the Value Added Tax Act 1983 were incompatible with the Sixth Council Directive (EEC) 77-338 (on the harmonisation of the laws of the member states relating to turnover taxes - Common system of value added tax: uniform basis of assessment) and that some of the taxpayers' claims for bad debt relief had not been time barred due to an inadequate transitional period.

Practice Areas

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