TMI Blog1993 (1) TMI 289X X X X Extracts X X X X X X X X Extracts X X X X ..... wing an appeal by the taxpayer company, the Professional Footballers' Association (Enterprises) Ltd., against a VAT assessment dated 9 December 1987 in respect of output tax due on trophies and medals presented at Professional Footballers' Association annual award dinners organised by the company for the years 1984-1987. The facts are set out in the opinion of Lord Slynn of Hadley. Nigel Pleming Q.C. and Jennifer Richards for the commissioners. William Massey for the company. Their Lordships took time for consideration. 28 January 1993. LORD TEMPLEMAN. My Lords, for the reasons to be given by my noble and learned friend, Lord Slynn of Hadley, I would dismiss this appeal. LORD BRIDGE OF HARWICH. My Lords, I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The winners did not pay for their awards. The commissioners decided that VAT was payable by the company as output tax on the value of these trophies and medals in respect of the four dinners organised by the company. The amount of VAT assessed was 1,547.53. The company appealed against that assessment. The Value Added Tax Tribunal by a decision of 5 January 1989 allowed the appeal (1989) V.A.T.T.R. 84 and reduced the overall liability of the company for VAT by the sum in dispute. The commissioners appealed. By judgment of 7 November 1990 Nolan J. [1990] S.T.C. 742 upheld the tribunal's decision. By a judgment of 3 March 1992 the Court of Appeal (Parker and Glidewell L.JJ., McCowan L.J. dissenting) [1992] S.T.C. 294 dismissed the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chedule, the value of the supply shall be taken to be the cost of the goods to the person making the supply except where paragraph 10 below applies. The issue on this appeal is agreed by the parties to be whether: (1) the trophies and medals supplied to the award winners by the company were supplies of goods otherwise than for a consideration, as contended by the commissioners, so that VAT falls to be paid on the cost of the trophies and medals to the company under Schedule 2, paragraph 5 and Schedule 4, paragraph 7 of the Act of 1983; or (2) the trophies and medals were supplied for a consideration included in the price of the dinner tickets, as contended by the company, so that Schedule 2, paragraph 5 and Schedule 4, paragraph 7 of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be met out of sponsorship and advertising. It is agreed in this case that the company was a taxable person and that the provision of these awards was not an exempt supply. It is also agreed that consideration does not have to move from the recipient of the award. It is sufficient if consideration was provided by a person other than the recipient (Lord Advocate v. Largs Golf Club [1985] S.T.C. 226, 231, and article 11A, 1(a) of the Sixth Council Directive of 17 May 1977 (77/388/ E.E.C.) (Official Journal 1977 No. L.1451)), but there must be a direct link between the awards provided and the consideration received: Apple and Pear Development Council v. Customs and Excise Commissioners (Case 102/86) [1988] 2 All E.R. 922. The issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed right, to find on the evidence that what each of those attending paid for included not merely seeing the presentation of the awards, but the actual provision or supply of those awards. It was a vital part of the evening. The tribunal was also right, as Parket L.J. said [1992] S.T.C. 294, 299, to look at the entire transaction and not to seek to break it up into different parts. It was clear from the accounts and from the findings of the tribunal that this was and was intended to be a self-supporting event. The receipts from tickets, from advertising and from the sponsors had to pay for the dinner, the entertainment, the awards and other expenses. There was in reality one set of accounts for one entire event. For the same reaso ..... X X X X Extracts X X X X X X X X Extracts X X X X
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