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News
Tax Case
Missing trader fraud
The Court of Appeal has referred a number of questions to the European Court of Justice in relation to the Federation of Technological Industries and others case. This case challenges the validity of sections 17 and 18, Finance Act 2003, which concern missing trader intra community VAT fraud. The questions are as follows:
News
Tax Case
Missing trader fraud
The Court of Appeal has referred a number of questions to the European Court of Justice in relation to the Federation of Technological Industries and others case. This case challenges the validity of sections 17 and 18, Finance Act 2003, which concern missing trader intra community VAT fraud. The questions are as follows:
(1) Does Article 21(3) of the Sixth Directive permit Member States to provide that any person may be made jointly and severally liable for payment of tax with any person who is made so liable by Article 21(1) or 21(2) subject only to the general principles of Community law, i.e. that such a measure must be objectively justifiable, rational, proportionate and legally certain?
(2) Does Article 22(8) allow Member States to provide that any person may be made so liable or to provide that one person may be required to provide security for tax due from another, subject only to the aforesaid general principles?
(3) If the answer to the first question is no, what limits, other than those imposed by the aforesaid general principles, are there on the power conferred by Article 21(3)?
(4) If the answer to the second question is no, what limits, other than those imposed by the aforesaid general principles, are there on the power conferred by Article 22(8)?
(5) Are Member States precluded by the directive from providing for joint and several liability of taxpayers or from requiring one taxpayer to provide security for tax due from another in order to prevent abuse of the VAT system and the protection of revenues properly due under that system, if such measures comply with the aforesaid general principles?
Customs have issued a press release saying that they will continue to apply the relevant anti-VAT fraud measures, pending the decision of the European Court.
(Commissioners of Customs and Excise v Federation of Technological Industries and others, Court of Appeal, 30 July 2004.)
