A member of the HMRC team continues with a View from 100 Parliament Street covering the Redcats decisions
Redcats sells clothing and household goods by mail order. It advertises its goods via a biannual catalogue. Until 2000 it supplied those catalogues free of charge. Then it introduced a scheme which amended its trading conditions by purporting to render a zero-rated charge for each catalogue and to make a commensurate reduction in the mainly standard-rated goods ordered from it. The sole purpose of the scheme was to reduce output tax on sales of catalogue goods.
HMRC did not agree that the scheme worked contending that the catalogue was not supplied for a consideration but was a gift. The Tribunal considered that there were seven questions which had to be answered of which...
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A member of the HMRC team continues with a View from 100 Parliament Street covering the Redcats decisions
Redcats sells clothing and household goods by mail order. It advertises its goods via a biannual catalogue. Until 2000 it supplied those catalogues free of charge. Then it introduced a scheme which amended its trading conditions by purporting to render a zero-rated charge for each catalogue and to make a commensurate reduction in the mainly standard-rated goods ordered from it. The sole purpose of the scheme was to reduce output tax on sales of catalogue goods.
HMRC did not agree that the scheme worked contending that the catalogue was not supplied for a consideration but was a gift. The Tribunal considered that there were seven questions which had to be answered of which...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
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