Deemed Supplies Flashcards
Describe the case of Julius Filibeck
The provision of free transport to work for employees was within the deemed supply provisions
However, it was possible to be made only for the purposes of business, if there were special circumstances which made it particularly difficult for the workers to get to work e.g. difficulty to find employees without transport = no deemed supply
Describe the case of Danfoss
Danish authorities assessed a company that provided free meals to employees and to business contacts
No deemed supply required if there is a business reason for the supply e.g. the efficient running of meetings
It did not apply if there was no business reason
Particularly relevant in the UK for overseas business client entertainment
Motivating employees is a business purpose
What is the significance of the case of Elm Milk and Masterguard Security services?
Input tax is recoverable on cars where the company has imposed policies to prevent private use
Pool cars are regarded as meeting the test and input tax recovery is not blocked
