Case Law

ECJ held that bodies governed by public law, even when they act as public authorities, are to be considered taxable persons where their treatment as non-taxable persons would lead to significant distortions of competition. The word ‘significant’ meaning that the actual or potential distortions of competition must be more than negligible. Commissioners of Her Majesty’s Revenue and Customs v Isle of Wight Council and Others Case C-288/07

Brendan Crawford (Inspector of Taxes) v Centime Ltd 2005 VI ITR 823 concerned whether a property developer who abandoned a proposed development could be treated as a taxable person. The High Court held that a person can be treated as a taxable person provided that the person has a genuine intention to develop land for the purposes of making a taxable supply.

The acquisitions and holding of bonds, and the receipt of income therefrom, was not an economic activity and therefore the person could not be a taxable person. Harnas & Helm CV v Staatssecretaris van Financien Case C-80/95

A pure holding company which only holds shares and receives dividends can not be treated as a taxable person. Polysar Investments Netherlands BV v Inspecteur der Invoerrechten en Accijnzen Case C-60/90

The exercise of the Development Council’s functions which related essentially to advertising and the promotion and improvement of the quality of apples and pears grown in England and Wales was held not to constitute a supply of services effected for consideration. Apple & Pear Development Council v Commissioners of Customs and Excise Case C-102/86

A person who acquired an interest in a building, yet to be constructed, with a view to letting it under a taxable lease, may be regarded as a taxable person and entitled to claim a VAT deduction. D.A. Rompleman and E.A. Rompleman-Van Deelen v Minister van Financien Case C-268/83