§ Mr. Trotterasked the Chancellor of the Exchequer if, in view of criticism from value added tax tribunals, he will review the practice of Customs and Excise of charging value added tax on a basis contrary to that set out in statements of practice issued to taxpayers when such statements are found to be legally incorrect; and if he will make a statement.
§ Mr. Bruce-GardyneIn the exercise of their responsibility for the care and management of the tax, the Commissioners of Customs and Excise publish a large range of public notices, leaflets and so on which contain their guidance for VAT registered traders on how the Commissioners interpret the law on VAT machinery, procedures and liability. This guidance is amended when necessary, consequent on legislative change, judgments delivered in litigation, or administrative review.
In recent cases on special aspects of the tax, individual VAT tribunals in reaching decisions on particular circumstances before them have criticised two reliefs published and operated by the Commissioners as being unduly generous interpretations of the law. In the circumstances of both cases and bearing in mind the fact that in neither was the legitimacy of the relief fully argued before the tribunals, the Commissioners have since concluded that they continue to have adequate legal justification for maintaining their previous attitude to these reliefs.