CKR VAT Consultancy Ltd
“Beyond the everyday world …. lies the world of VAT,
a kind of fiscal theme park in which factual and legal realities are suspended or inverted”
(quote from Lord Justice Sedley – Royal and Sun Alliance case).
VAT has become the most complicated of taxes. Any business, charity or individual can quickly fall victim to the incorrect application of VAT on expenditure or income which could, if left unchecked, lead to overpaid VAT.
A system of penalties and interest charges for compliance errors makes the task of managing VAT ever more complex and stressful. Businesses with limited technical competence to determine the VAT liability of their income may simply apply the doctrine ……..”if in doubt – charge out”!
Private customers and businesses unable to recover VAT on expenditure could unwittingly fall victim to such a cavalier approach; an outcome which may or may not be correctable depending on the timing of the transactions at issue and the relative compliance and liquidity of the supplier!
‘Tax law should not become a sort of legal “wild-west” in which virtually every sort of opportunistic behaviour has to be tolerated so long as it conforms with a strict formalistic interpretation of the relevant tax provisions and the legislature has not expressly taken measures to prevent such behaviour.’ (Advocate General Poiares Maduro reflecting on the principle of abuse of Community Law (“ Halifax”))
My aim is to carry and lead my clients through the maze of legislation, litigation, decisions and opinion on the application and recovery of VAT and the impact of this ever changing tax on their businesses.