The City Council of Norwich
| Jurisdiction | UK Non-devolved |
| Judgment Date | 11 February 1994 |
| Date | 11 February 1994 |
| Court | Value Added Tax Tribunal |
VAT Tribunal
VAT Tribunal
The following cases were referred to in the decision:
Lord Fisher; C & E Commrs v VAT(1981) 1 BVC 392
Morrison's Academy Boarding Houses Association; C & E Commrs v VAT(1977) 1 BVC 108
Ufficio Distrettuale delle Imposte Dirette di Fiorenzuola d'Arda & Ors v Comune di Carpaneto Piacentino and Ufficio Provinciale Imposta Sul Valore Aggiunto di Piacenza VAT(Joined Cases 231/87 and 129/88) [1991] BVC 70
Supplies - Local authority - Supply in course of business - Economic activity - Advertising facilities granted to sponsors in return for sponsorship money - Sponsorship money applied to finance campaigns and events organised by local authority - Whether local authority carrying on a business - Whether engaged in "economic activity" - Value Added Tax Act 1983, s. 2(1); Directive 77/388, the sixth VAT directive, eu-directive 77/388 article 4(1) article 4(2)art. 4(1) and 4(2)Taxable person - Activities engaged in by bodies acting as public authorities - Payments made in connection with activities - Whether sponsorship deals carried out by local authority amounted to activities engaged in by it "as public authority" - The sixth VAT directive, eu-directive 77/388 article 4(5)art. 4(5)
The issue was whether the supplies in relation to which sponsorship moneys paid to Norwich Council by different businesses were made by the council in the course or furtherance of a business or as part of an economic activity so that these activities were within the charge to VAT or whether they were carried out to discharge the council's statutory functions and did not have the necessary continuity, substance or regularity to amount to business activities.
The appellant local authority was registered for tax and made both taxable supplies in relation to its commercial developments, car parks, sporting facilities, public markets, crematoria and advertising but was outside the scope of VAT in conducting its statutory functions.
The council obtained sponsorship for various events which it organised, pursuant to powers and obligations granted under various enactments. These events were:
(1) Canine Care Days in 1991 and 1992: one sponsorship deal. The council was the statutory authority for dealing with stray dogs under s. 149 of the Environmental Protection Act 1990 and was the "litter authority" for dog droppings. The purposes of promoting these events was the care and control of dogs and the publicising of dog litter arrangements.
(2) Child Safety Campaigns in 1992: ten different sponsors. Here the council was acting in pursuance of s. 1 of the Home Safety Act 1961 relating to the prevention of accidents in the home.
(3) Household Waste Campaign: one sponsorship deal with Anglian Water. The provision of proper facilities for the disposal of household waste was a statutory obligation imposed by s. 45 of the Environmental Protection Act 1990.
(4) Anti-Smoking Campaign sponsored by the National Westminster Bank. This was pursuant to s. 54 of the Public Health Diseases Act 1984 empowering local authorities to arrange the instruction of the public on health protection matters.
The commissioners raised an assessment covering the period 1 January 1990 until 30 November 1992 in the sum of £1,687, against which the council appealed.
The commissioners contended that supplies were supplies of services in the course or furtherance of the council's business whereby advertising facilities were granted for a consideration. These supplies were not taken outside the scope of tax by the regime applicable to local authorities carrying out their statutory functions.
The appellant contended that the activities in question were not predominantly concerned with the making of taxable supplies to consumers for profit and therefore did not amount to making supplies in the course or furtherance of a business but were rather carried out to discharge the council's statutory functions. In any event, so far as the Household Waste Campaign was concerned the activities were engaged in by them as a public authority and the sponsorship moneys were "fees contributions or payments in connection with these activities" so that they were taken outside the scope of VAT by eu-directive 77/388 article 4(5)art. 4(5) of the sixth directive.
Held, dismissing the taxpayer's appeal:
1. Applying the well known indicia of business formulated inC & E Commrs v Morrison's Academy Boarding Houses Association VAT(1977) 1 BVC 108 to the facts of the case it could be said that the...
To continue reading
Request your trial
-
West Devon District Council v Commissioners of Customs and Excise
...VATTR 106; (1985) 2 BVC 205,246 National Water Council v C & E Commrs VAT(1978) 1 BVC 199 The City Council of Norwich VATNo. 11,822; [1995] BVC 712 Town Investments Ltd v Department of the EnvironmentELR[1978] AC 359 Ufficio Distrettuale delle Imposte Dirette di Fiorenzuala d'Arda v Comune ......