This edition of Tax Insight contains a selection of articles that reflects material which has been published recently by members of the unit, or which is being circulated in order to keep our clients in contact with recent developments. They relate to a variety of different areas. As will be seen from Beverley Tanner's article on the subject, the Chancellor's Budget Day promises to introduce tax legislation which is related to environmental issues is being fulfilled by the introduction of a series of new taxes, all of which are falling within the ambit of Customs & Excise. The details of these taxes are still to emerge, but one thing that is beyond doubt is that they are going to constitute a considerable new cost to the businesses concerned.
The most significant activity in the UK law courts in the field of taxation has been the ruling of the Special Commissioner in the case of An Applicant, which has important implications for the law of privilege as it applies to taxpayers and their advisers. These are described in Adam Blakemore's article. The House of Lords have heard the case of ICI -v- Colmer again, following the judgment of the European Court that was described in a previous edition of Tax Insight. Hammond Suddards were present at the ruling, and we are awaiting a publication of the judgment of the House of Lords in that case.
The US tax case of National Westminster Bank -v- the US is an extremely important case in the field of international taxation, specifically as it applies to the interaction of domestic legislation and double tax treaties. The implications of that case from a UK point of view are described in an article by George Hardy.
Also in the field of international taxation, the Inland Revenue have published a paper concerning a review of the UK laws on double taxation relief. These are examined as they are applied to the use of offshore mixer companies by Adam Blakemore.
Finally, in the field of VAT, the case of Kuwait Petroleum has important implications for gift card schemes which are widely used by UK businesses. This case is the subject of an article by Mark Simpson. As noted by Beverley Tanner, a couple of recent VAT Tribunal decisions have cast some doubt on the correct procedure to be applied in electing to waive the exemption to charge VAT, particularly as it applies in the context of transfers of businesses as a going concern. These doubts have been the subject of a Business Brief article published by Customs & Excise.
For further information please contact George Hardy, 2 Park Lane, Leeds LS3 1ES
Tel: +44 113 284 7000
This article was first published in the Autumn 1999 issue of Hammond Suddards' Tax Insight Newsletter.
The information and opinions contained in this article are provided by Hammond Suddards. They should not be applied to any particular set of facts without appropriate legal or other professional advice.
