Barnett & Anor (t/a Burghill Valley Golf Club) v Revenue & Customs [2009] UKFTT 119 (TC) (02 June 2009)

Barnett & Anor (t/a Burghill Valley Golf Club) v Revenue & Customs [2009] UKFTT 119 (TC) (02 June 2009)

The Appellants, despite the creation of two companies, retained effective control over the assets, staff, and operations of the golf club, and the companies lacked the resources and independence to be the true suppliers. The arrangements did not alter the substance and reality that the Appellants made the supplies of sporting services for VAT purposes. Therefore, the Appellants are liable for VAT on those supplies.

Citation
[2009] UKFTT 119
Parties
Appellants: Mrs Phillida Barnett and Mrs Lara Read (t/a Burghill Valley Golf Club); Respondents: The Commissioners for Her Majesty's Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
02 June 2009
Procedural Posture
VAT Assessment Appeal / First Tier Tribunal (tax Chamber) Decision
Outcome
Appeal dismissed
Legal Topics
VAT Liability, Exempt Supplies, Supply of Sporting Services, Corporate Structuring for Tax Purposes, Doctrine of Abuse
Tax Law VAT Liability Exempt Supplies Supply of Sporting Services Corporate Structuring for Tax Purposes Doctrine of Abuse

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Parties

Mrs Phillida Barnett and Mrs Lara Read (t/a Burghill Valley Golf Club)

Appellants

The Commissioners for Her Majesty's Revenue and Customs

Respondents

Procedural Posture

VAT Assessment Appeal / First Tier Tribunal (tax Chamber) Decision

Legal Issues

  1. 1 Who made the supply of sporting services for VAT purposes?
  2. 2 Whether the doctrine of abuse applies to the arrangements

Ratio Decidendi

The Appellants, despite the creation of two companies, retained effective control over the assets, staff, and operations of the golf club, and the companies lacked the resources and independence to be the true suppliers. The arrangements did not alter the substance and reality that the Appellants made the supplies of sporting services for VAT purposes. Therefore, the Appellants are liable for VAT on those supplies.

Court Disposition

Appeal dismissed

Orders

  • The Appellants are liable for the VAT assessment notified 10 January 2004.
  • No order for costs.