Pride v Revenue and Customs (PROCEDURE - VALUE ADDED TAX - Application to strike-out appeals - Whether appeals enjoy any reasonable prospect of success?) [2023] UKFTT 315 (TC) (28 March 2023)

Pride v Revenue and Customs (PROCEDURE - VALUE ADDED TAX - Application to strike-out appeals - Whether appeals enjoy any reasonable prospect of success?) [2023] UKFTT 315 (TC) (28 March 2023)

The appeals were struck out because there was no reasonable prospect of success; the contractual arrangements were artificial, did not reflect economic reality, and constituted an abuse of rights under VAT law. The evidence overwhelmingly showed that Mediability supplied advertising services to Wilmslow PLC in the...

Source-derived case information.

Citation
[2023] UKFTT 315 (TC)
Parties
Appellant: Mediability Limited; Respondents: The Commissioners for His Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
28 March 2023
Procedural Posture
VAT Appeal / Strike Out Application Decision
Outcome
Appeals struck out in their entirety
Legal Topics
Value Added Tax, Abuse of Rights, Place of Supply, Strike Out Procedure, Economic Reality Vs Contractual Reality
Tax Law European Union Law Value Added Tax Abuse of Rights Place of Supply Strike Out Procedure Economic Reality Vs Contractual Reality

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Parties

Mediability Limited

Appellant

The Commissioners for His Majesty’s Revenue and Customs

Respondents

Procedural Posture

VAT Appeal / Strike Out Application Decision

Legal Issues

  1. 1 Whether the appeals have any reasonable prospect of success under Rule 8(3)(c)
  2. 2 Whether the appeals should be struck out as an abuse of process
  3. 3 Whether the contractual arrangements reflect economic reality for VAT purposes

Ratio Decidendi

The appeals were struck out because there was no reasonable prospect of success; the contractual arrangements were artificial, did not reflect economic reality, and constituted an abuse of rights under VAT law. The evidence overwhelmingly showed that Mediability supplied advertising services to Wilmslow PLC in the UK, not Karacus, and the scheme was designed solely to avoid VAT. Even if not struck out for lack of prospects, the appeals would be struck out as an abuse of process due to relitigation of issues already decided and public policy considerations.

Court Disposition

Appeals struck out in their entirety

Orders

  • No further procedural directions required
  • Right to apply for permission to appeal within 56 days under Rule 39