Nature of fees
The Bank of Scotland issued its own bank notes as it was so entitled under the Bank Notes (Scotland) Act 1845. Third parties printed the notes. The bank received reciprocity or intercharge fees under agreements with other banks whereby the bank had dispensed its notes to customers of other banks who used the Bank of Scotland's automated teller machines.
The issue according to Customs before the tribunal was how to treat the reciprocity fees. Customs said that they were paid for the provision of the service of banking facilities i.e. the dispensing of bank notes. The fee was not paid to the bank so that it could issue its own notes it was rather so that the counterparty bank's customer could obtain a service of acquiring money.
The appellant said that the tribunal had to determine exactly what the bank was...
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