British Telecommunications Plc v Revenue And Customs [2023] EWCA Civ 1412 (04 December 2023)

British Telecommunications Plc v Revenue And Customs [2023] EWCA Civ 1412 (04 December 2023)

Parliament intended the Old Scheme for VAT bad debt relief to be exclusive, ousting common law claims for restitution in respect of the main period. The statutory scheme was comprehensive, with procedural and substantive conditions, and its repeal did not infringe directly effective EU law rights. BT's claim for the main period is struck out. The claim for the 9-month period is also struck out as time-barred under s.32(1)(c) Limitation Act 1980 and the FII 2020 test, as BT could have discovered the mistake with reasonable diligence before the claim was made.

Citation
[2023] EWCA Civ 1412
Parties
Claimant/appellant: British Telecommunications PLC; Defendants/respondents: The Commissioners for His Majesty's Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
04 December 2023
Procedural Posture
Civil Appeal / Court of Appeal Judgment Following Appeal From High Court (strike Out/reverse Summary Judgment)
Outcome
Appeal dismissed; cross-appeal allowed
Legal Topics
VAT Bad Debt Relief, Exclusive Statutory Remedies, Unjust Enrichment, Limitation Periods, Mistake of Law, Implementation of EU Directives
Tax Law Restitution European Union Law VAT Bad Debt Relief Exclusive Statutory Remedies Unjust Enrichment Limitation Periods Mistake of Law +1 more

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Parties

British Telecommunications PLC

Claimant/appellant

The Commissioners for His Majesty's Revenue and Customs

Defendants/respondents

Procedural Posture

Civil Appeal / Court of Appeal Judgment Following Appeal From High Court (strike Out/reverse Summary Judgment)

Legal Issues

  1. 1 Whether the Old Scheme for VAT bad debt relief was intended by Parliament to be an exclusive remedy, ousting common law claims
  2. 2 Whether BT's claim for restitution is bound to fail for lack of unjust enrichment
  3. 3 Whether BT's claim for the 9-month period is time-barred under s.32(1)(c) Limitation Act 1980 and FII 2020

Ratio Decidendi

Parliament intended the Old Scheme for VAT bad debt relief to be exclusive, ousting common law claims for restitution in respect of the main period. The statutory scheme was comprehensive, with procedural and substantive conditions, and its repeal did not infringe directly effective EU law rights. BT's claim for the main period is struck out. The claim for the 9-month period is also struck out as time-barred under s.32(1)(c) Limitation Act 1980 and the FII 2020 test, as BT could have discovered the mistake with reasonable diligence before the claim was made.

Court Disposition

Appeal dismissed; cross-appeal allowed

Orders

  • BT's claim for restitution in respect of the main period is struck out.
  • BT's claim for the 9-month period is struck out as time-barred.