.png)
.png)
The taxpayer, a cigarette vending machine operator, purchased a Lamborghini car which he claimed was for the sole purpose of business use. Customs disallowed the input tax claimed in respect of the car's purchase on the ground that it would be available for private use.
The tribunal, however, found that the car had been bought for the purpose of impressing customers and staying ahead of the competition, and said that the taxpayer had convinced it that the car would not be available for private purposes.
Customs appealed to the High Court saying that the exclusion only covered cars which could not physically be used for private purposes, e.g., leasing cars, or those which were not realistically usable, such as marked police cars.
Sir Andrew Morritt, Vice-Chancellor, agreed that the tribunal had misdirected itself as to the true construction of the words 'make available'. The taxpayer's claim for input tax deduction on the car would be disallowed.
Customs' appeal was allowed.
(Commissioners of Customs and Excise v Upton (trading as Fagomatic), Chancery Division, 2 May 2001)
The taxpayer, a cigarette vending machine operator, purchased a Lamborghini car which he claimed was for the sole purpose of business use. Customs disallowed the input tax claimed in respect of the car's purchase on the ground that it would be available for private use. The tribunal, however, found that the car had been bought for the purpose of impressing customers and staying ahead of the competition, and said that the taxpayer had convinced it that the car would not be available for private purposes.
Customs appealed to the High Court saying that the exclusion only covered cars which could not physically be used for private purposes, e.g., leasing cars, or those which were not realistically usable, such as marked police cars.
Sir Andrew Morritt, Vice-Chancellor, agreed that the tribunal had misdirected itself as to the true construction of the words 'make available'. The taxpayer's claim for input tax deduction on the car would be disallowed.
Customs' appeal was allowed.
(Commissioners of Customs and Excise v Upton (trading as Fagomatic), Chancery Division, 2 May 2001)
