Courts Plc v Customs and Excise

Courts Plc v Customs and Excise

A valid assessment under section 73 of the Value Added Tax Act 1994 is made when an authorised officer completes and signs the assessment form with the intention to assess, regardless of whether the form is processed or a VAT655 is generated. A 'protective assessment' is valid if it is intended to create a present liability, and subsequent alternative assessments do not automatically supersede earlier assessments unless expressly stated.

Parties
Appellant: Courts Plc; Respondents: Commissioners of Customs and Excise
Jurisdiction
England and Wales
Judgment Date
17 November 2004
Procedural Posture
Civil Appeal / Appeal From High Court (chancery Division) to Court of Appeal
Outcome
Appeal dismissed
Legal Topics
Value Added Tax, Tax Assessments, Administrative Law, Statutory Interpretation
Tax Law Value Added Tax Tax Assessments Administrative Law Statutory Interpretation

Case Brief

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Parties

Courts Plc

Appellant

Commissioners of Customs and Excise

Respondents

Procedural Posture

Civil Appeal / Appeal From High Court (chancery Division) to Court of Appeal

Legal Issues

  1. 1 What constitutes an 'assessment' under section 73 of the Value Added Tax Act 1994?
  2. 2 Whether a 'protective assessment' is valid and effective for statutory purposes?
  3. 3 Whether subsequent assessments or notifications supersede or withdraw earlier assessments?

Ratio Decidendi

A valid assessment under section 73 of the Value Added Tax Act 1994 is made when an authorised officer completes and signs the assessment form with the intention to assess, regardless of whether the form is processed or a VAT655 is generated. A 'protective assessment' is valid if it is intended to create a present liability, and subsequent alternative assessments do not automatically supersede earlier assessments unless expressly stated.

Court Disposition

Appeal dismissed

Orders

  • Appellant to pay the respondent’s costs, subject to detailed assessment if not agreed.
  • Application for permission to appeal refused.