Mercy Global Consult Limited (in liquidation) v Abayomi Adegbuyi-Jackson & Ors

Mercy Global Consult Limited (in liquidation) v Abayomi Adegbuyi-Jackson & Ors

The Court of Appeal decision in Mainpay is binding and establishes a distinction for VAT purposes between supplies of staff and supplies of services provided by those staff. This precludes the VAT Defence, and permission to amend defences or to try the VAT Defence as a preliminary issue must be refused.

Parties
Claimant/respondent: Mercy Global Consult Limited (in Liquidation); Defendant/appellant: Abayomi Adegbuyi-Jackson; Defendant/appellant: Michael Osemwegie; Defendant/appellant: Funmilayo Ojuolape Adegbuyi-Jackson; Defendant/appellant: Cornerstone Global System UK Limited; Defendant/appellant: Mercy Global Properties Solutions Limited; Defendant/appellant: Dominion Payroll Solutions Limited; Defendant/appellant: Olugbenga Titus Jones Somade; Defendant/appellant: Ojuolape Arcade Limited; Defendant/appellant: DMO Consultancy & Accounting Services Limited; Defendant/appellant: Purpose IP Consult Limited; Defendant/appellant: Hanstal Consulting Limited
Jurisdiction
England and Wales
Judgment Date
11 October 2024
Procedural Posture
Civil Appeal / Appeal From High Court Decision Refusing Permission to Amend Defences and to Try VAT Defence as Preliminary Issue
Outcome
Appeal dismissed
Legal Topics
VAT Exemption, Fraudulent Breach of Duty, Proprietary Remedies, Dishonest Assistance, Unlawful Means Conspiracy
Tax Law Insolvency Equity VAT Exemption Fraudulent Breach of Duty Proprietary Remedies Dishonest Assistance Unlawful Means Conspiracy

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Parties

Mercy Global Consult Limited (in Liquidation)

Claimant/respondent

Abayomi Adegbuyi-Jackson

Defendant/appellant

Michael Osemwegie

Defendant/appellant

Funmilayo Ojuolape Adegbuyi-Jackson

Defendant/appellant

Cornerstone Global System UK Limited

Defendant/appellant

Mercy Global Properties Solutions Limited

Defendant/appellant

Dominion Payroll Solutions Limited

Defendant/appellant

Olugbenga Titus Jones Somade

Defendant/appellant

Ojuolape Arcade Limited

Defendant/appellant

DMO Consultancy & Accounting Services Limited

Defendant/appellant

Purpose IP Consult Limited

Defendant/appellant

Hanstal Consulting Limited

Defendant/appellant

Procedural Posture

Civil Appeal / Appeal From High Court Decision Refusing Permission to Amend Defences and to Try VAT Defence as Preliminary Issue

Legal Issues

  1. 1 Whether the VAT Defence is precluded by the Court of Appeal decision in Mainpay Ltd v Revenue and Customs Commissioners
  2. 2 Whether the distinction between supply of staff and supply of services provided by staff is binding
  3. 3 Whether permission to amend defences to introduce VAT Defence should be granted

Ratio Decidendi

The Court of Appeal decision in Mainpay is binding and establishes a distinction for VAT purposes between supplies of staff and supplies of services provided by those staff. This precludes the VAT Defence, and permission to amend defences or to try the VAT Defence as a preliminary issue must be refused.

Court Disposition

Appeal dismissed

Orders

  • Permission to amend defences to introduce VAT Defence refused
  • Application for trial of VAT Defence as preliminary issue refused