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Debt management company Baines & Ernst has triumphed in a Court of Appeal battle
with the taxman for the return of three years’ VAT payments.
After defeat before the VAT and Duties Tribunal, and only partial victory at the
High Court, the Appeal Court has handed Baines & Ernst an outright win likely to
be worth millions.
Baines & Ernst sought repayment of VAT for the years 2000/02, following a VAT
tribunal ruling in 2002 that debt management services were exempt for VAT
purposes.
The taxman argued that, as the debt managers had passed the VAT charges on to
customers, to allow the claim would constitute "unjust enrichment". This claim
was backed by the VAT tribunal.
But on appeal, High Court judge Mr Justice Warren ruled against the tribunal’s
decision.
He found that the VAT for 2002 was repayable, but that the defence might be made
out in respect of 2000/01. He referred the matter back to the tribunal to decide
whether repayment could be made for those two years.
Both sides appealed and today three judges found in favour of Baines & Ernst.
Source:
Getting Paid
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