In E Cussens and others v TG Brosnan (Case C-251/16) (22 November 2017) the CJEU found that the Halifax principle can apply in the absence of national rules transposing it into the domestic legal system.
The appellants owned a development site on which they had constructed 15 holiday cottages intended for sale. Prior to the sale they entered into a lease and leaseback transaction with an associated company. The leases were subsequently ended by mutual surrender and the properties were sold. No VAT was paid on the sale on the basis that the properties had already been the object of a first supply. The Irish tax authorities considered that the two leases had ‘artificially created’ a first supply and should therefore be disregarded for VAT purposes.
The main issue was whether the principle of abuse of rights (established in Halifax (Case C-2006/121)) is directly effective against an individual...
