Systems Aluminium Ltd v Revenue & Customs [2013] UKFTT 201 (TC) (27 March 2013)

Systems Aluminium Ltd v Revenue & Customs [2013] UKFTT 201 (TC) (27 March 2013)

The reimbursement arrangements entered into by the Appellant did not comply with statutory requirements as reimbursement was not made in cash or by cheque, and FMC did not bear the economic burden of the tax. Therefore, the arrangements must be disregarded and the Appellant was unjustly enriched. The Tribunal has no jurisdiction to consider public law remedies or legitimate expectation based on ultra vires arrangements. The Appellant failed to show any quantifiable loss under s80(3B) VATA 1994.

Citation
[2013] UKFTT 201
Parties
Appellant: Systems Aluminium Limited; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
27 March 2013
Procedural Posture
VAT Appeal / First Tier Tribunal (tax Chamber) Final Decision
Outcome
Appeal dismissed
Legal Topics
VAT Overpayment, Unjust Enrichment, Reimbursement Arrangements, Public Law Remedies, Legitimate Expectation, Jurisdiction of Tribunal
Tax Law Insolvency Law Administrative Law VAT Overpayment Unjust Enrichment Reimbursement Arrangements Public Law Remedies Legitimate Expectation +1 more

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Parties

Systems Aluminium Limited

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

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

Legal Issues

  1. 1 Whether the repayment of overpaid output tax by HMRC to the Appellant is recoverable on the ground of unjust enrichment
  2. 2 Whether the reimbursement arrangements constituted a binding contract or were ultra vires
  3. 3 Whether crediting a customer’s ledger account constitutes reimbursement 'in cash or by cheque' under the VAT Regulations

Ratio Decidendi

The reimbursement arrangements entered into by the Appellant did not comply with statutory requirements as reimbursement was not made in cash or by cheque, and FMC did not bear the economic burden of the tax. Therefore, the arrangements must be disregarded and the Appellant was unjustly enriched. The Tribunal has no jurisdiction to consider public law remedies or legitimate expectation based on ultra vires arrangements. The Appellant failed to show any quantifiable loss under s80(3B) VATA 1994.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed in full.
  • The Notice of Assessment for £682,984 is upheld.