taxing times · 01-11-2016 · person –mg rover and ors [2016] ukut 434 (tcc) taxing times...
TRANSCRIPT
Taxing times
www.pwc.co.uk
1 November 2016
Indirect Tax Forum
PwC
Agenda
November 2016Taxing times
Slide 2
17.00: Drinks reception
16.00: Guest speaker plenary and Q&A
16.50: Concluding remarks
15.20: Workshop session 2
14:00: Welcome and update on hot topics
Martin Blanche, PwC
14.20: Workshop session 1
13.30: Registration
15:00 Tea break
PwC
Today’s workshops
November 2016Taxing times
Slide 3
Workshops Room
1. VAT Case Law Update –Implications and issues on the horizon
Burton
2. Update on Larentia and Minerva – VAT and deal fees
Trafalgar 2
3. Introduction of GST in India –less than 6 months to go
Trafalgar 1
4. GlobalVATOnline – New developments, analytics and impact assessment technology
St James 1
PwC
Update
November 2016Taxing times
Slide 4
3
GMAC III Brexit
1
MG Rover and ors
2 4
Larentia + Minerva
5
Brexit
PwC
Potential timeline of an EU exit
Brexit scenarios
Key indirect taxes issues for your business
Questions???
EU Referendum – Now what?
November 2016Taxing times
Slide 5
1
2
3
4
PwC
Entitlement to s 80 repayment lies with single taxable person – MG Rover and ors [2016] UKUT 434 (TCC)
November 2016Taxing times
Slide 6PwC
Members of VAT groups – past and present
The Upper Tribunal held that the right to a s 80 repayment lies with the single taxable person and that any resolution of how the members of a group deal with that repayment is a private law matter. The decision raises as many questions as it answers and will be relevant to all taxpayers who have received Fleming refunds or whose business activities generated a Fleming refund.
PwC
HMRC v GMAC UK Plc [2016] EWCA Civ 1015Reductions in consideration and bad debt relief
November 2016Taxing times
Slide 7
1
2
3
The 'insolvency' and
'property' conditions
which the UK used to
impose for VAT bad debt
relief (BDR) were
incompatible with EU law
and therefore must be
disapplied.
Refunds the
taxpayer claimed
for VAT BDR
should be repaid
for all periods after
1989
.Taxpayer's pre-1989
BDR claims were
time-barred when the
'old scheme' for
making those claims
was withdrawn in
1997.
PwC
ECJ supports VAT deduction by ‘active’ holding companies and VAT grouping for natural persons
November 2016Taxing times
Slide 8
Active holding companies entitled to full VAT deduction on costs.
1
Cases reaching settlement and VAT refunds possible.
2
Finland and Denmark tax authorities announce a change in Policy. OtherEU territoriesmay follow
3 4
HMRC issueddraft guidanceand entered a consultation process… new RCB to be issued shortly!
Larentia + Minerva (C-108/14)
PwC
Do you know now which countries to focus on to prepare for Brexit?
Do you know what systems and procedures changes you may need to implement to support your business in a post-Brexit environment?
Brexit
November 2016Taxing times
Slide 9
Do you know the additional administration cost of customs certification at the new ‘border’?
Post Brexit do you know how much that cost will increase?
Have you mapped out your supply chain flows?
Do you know how much customs duty you pay now?
PwC
Today’s workshops
November 2016Taxing times
Slide 10
Workshops Room
1. VAT Case Law Update –Implications and issues on the horizon
Burton
2. Update on Larentia and Minerva – VAT and deal fees
Trafalgar 2
3. Introduction of GST in India –less than 6 months to go
Trafalgar 1
4. GlobalVATOnline – new developments, analytics and impact assessment technology
St James 1
PwC
Brexit – What next?
November 2016Taxing times
Slide 11
Indirect tax implications of a leave vote
PwC
Agenda
November 2016Taxing times
Slide 12
SummaryBrexit
scenariosHMRC
Perspective of the EU
27Questions
1 2 3
54
PwC
Examples of potential scenarios that could manifest in the upcoming UK/EU negotiations
Potential EU/UK agreements
European free trade agreement (EFTA)
Bilateral agreement(Swiss option)
• Belong to Single Market, must enact Single Market policy and legislation
• Free movement of goods (except agriculture and fisheries)
• Customs Border with EU
• No access to EU Free Trade Agreements (“FTAs”)
• Import VAT assessed
• Free movement of goods (except agricultural products)
• Customs Border with EU
• No access to EU FTAs
• EFTA has 27 FTAs covering 38 countries
• Import VAT assessed
• Free movement of goods (except agricultural products)
• Customs Border with EU
• No access to EU FTAs
• Flexible a la carte bilateral agreements
• Must enact pertinent EU legislation and policy
• Import VAT assessed
Ind
irec
t T
ax
Im
pli
cati
on
s
No access agreement (WTO/MFN)
• No free movement of goods
• Goods subject to default WTO/MFN rates crossing EU border
• Customs Border with EU
• No access to EU FTAs
• Import VAT assessed
EEA member (Norwegian option)
November 2016Taxing times
Slide 13
Global ITX ForumBrexit
1 November 2016
Ine Lejeune
Jurgen Gevers
PwC
The impact of Brexit on (global) trade
15
Brexit Monitor, Issue 11
PwC
The impact of Brexit on (global) trade
16
PwC
Future UK trade flows
17
PwC
Trade costs will increase
18
PwC
Reconsidering locations in supply chain and valuechain
19
PwC
Future UK trade flows
20
PwC
Questions?
November 2016Taxing times
Slide 21
PwC
Final points
November 2016Taxing times
Slide 22PwC
Feedback forms
1 Drinks reception!
3Next event
2
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