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Surprise decision
KEY POINTS
- Business splitting may be used to avoid VAT registration.
- Facts of the case indicated to the tribunal there were two businesses.
- Importance of financial organisational and economic links to prove a single business.
- Commercial reality must reflect separate entities.
There are times when I read VAT tribunal reports and find myself getting cross with taxpayers for wasting everyone’s time with a seemingly meaningless appeal. Then I reach the end of the report and discover to my amazement that the appeal was successful. How could that have happened I wonder relieved that I am sitting down and will not collapse to the floor in a state of shock.
This happened with the recent First-tier Tribunal decision in Graham and Christine Belcher (TC5891) about the ever-topical subject of business splitting. This...
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