BAA LOSES TO HMRC

摘要

The case of BAA pic v HMRC [2013] EWCA Civ 112 concerning VAT recovery on costs related to a hostile takeover bid, has reached its third hearing and decision, this time at the Court of Appeal. To recap, the FIT had decided that the takeover vehicle had been carrying out an 'economic activity' at the time of making the acquisition of BAA, and , that furthermore the circumstances indicated a direct and immediate link between the costs of the acquisition and taxable supplies made by the VAT group of BAA (of which it became a member shortly after having carried out the acquisition). It therefore allowed the taxpayer's appeal.