Case Law

A leasing transaction was split into a number of separate contracts with the effect of obtaining a tax advantage. The ECJ held that there can be a finding of an abusive practice when the accrual of a tax advantage constitutes the principal aim of the transaction or transactions. Ministero dell’Economia e delle Finanze v Part Service Srl Case C-425/06

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.

A payment which takes into account other factors does not preclude a ‘letting of immovable property’, as long as the key characteristics of a letting agreement are also present. Belgian State v Temco Europe S.A. Case C-284/03

ECJ held that national provisions can be adopted whereby classification as a supply of goods is made subject to a condition that the consideration must equal the ‘economic value’ of those goods. Stichting ‘Goed Wonen’ v Staatssecretaris van Financien Case C-326/99

ECJ ruled that where a partner’s sole economic activity as an individual is the letting of immovable property to a company or partnership of which he is a member, then that letting must be regarded as an independent activity. Staatssecretaris van Financien v J. Heerma Case C-23/98

ECJ ruled that ‘letting of immovable property’ which falls within the exemption provided for by Article 13B(b) of the Sixth Directive includes the situation where there is a termination of a lease for consideration. Lubbock Fine & Co. v Commissioners of Customs and Excise Case C-63/92

The grant of building rights, by the owner of the property, for a specified period in return for consideration, must be regarded as an economic activity involving the exploitation of tangible property. W.M. van Tiem v Staatssecretaris van Financien Case C-186/89

‘Supply of goods’ covers any transfer of tangible property by one party which empowers the other party to dispose of it as if he were the owner of the property. Staatssecretaris van Financien v Shipping and Forwarding Enterprise Safe BV Case C-320/88