VRS2365 - Eligibility and refusal to allow use of a retail scheme: The power to refuse use of a retail scheme: Protection of the revenue

In the High Court case of Svenska International Plc [1996] STC 1000 at page 1007 (e-f) Mr Justice Carnwath referred to the issue of protection of the revenue as a

鈥榯erm which would entitle the Commissioners to take account of future tax as well as accrued tax.鈥�

Although this comment was obiter (by the way), it provides support for the view that the power can be considered in situations where:

  • VAT has or may become due and the revenue needs to be protected because there are doubts about our ability to collect that VAT;
  • arrangements are put in place to prevent VAT from properly becoming due and the revenue needs to be protected in order to make that VAT become due; and
  • arrangements are put in place to generate an unjustified tax advantage.