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\par AT SUVA
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\par }\pard \qc \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14711859 {\f0\fs24\lang2057\langfe1033\langnp2057\insrsid16734127\charrsid14711859 CIVIL APPEAL NO. CBV0008 OF 2007S
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\b\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671\charrsid14711859  }{\b\f0\fs24\lang2057\langfe1033\langnp2057\insrsid16734127\charrsid14711859 FASHION (FIJI) LIMITED}{\b\f0\fs24\lang2057\langfe1033\langnp2057\insrsid14711859\charrsid14711859 

\par }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid16734127\charrsid14711859 Petitioner
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\par Coram:\tab The Hon Justice Keith Mason, Judge of the Supreme Court
\par The Hon Justice Kenneth Handley, Judge of the Supreme Court
\par The Hon Justice Ronald Sackville, Judge of the Supreme Court
\par 
\par Hearing:\tab Monday 21st July 2008, Suva
\par 
\par Counsel:}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid14711859 
\par }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid16734127\charrsid14711859 Mr }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid14711859 I. Fa\tab }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid877618\charrsid14711859 ]}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid614358\charrsid614358  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid614358\charrsid14711859 for the Petitioner}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid877618\charrsid14711859 
\par }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid14711859 Mrs A Tavo\tab }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid877618\charrsid14711859 ]}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671\charrsid14711859  }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid16734127\charrsid14711859 
\par }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid877618\charrsid14711859 
\par }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid16734127\charrsid14711859 Mr}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid877618\charrsid14711859  B. Solanki\tab \tab ]}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid614358\charrsid614358  }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid614358\charrsid14711859 for the Respondent}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid877618\charrsid14711859 
\par Mrs T. Rayawa\tab ]}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671\charrsid14711859  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid16734127\charrsid14711859 
\par 
\par Date of}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671\charrsid14711859  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid16734127\charrsid14711859 Judgment:\tab }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid5471256\charrsid14711859 
Wednesday, 23rd July 2008, Suva}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid16734127\charrsid14711859 
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\par }{\b\f0\fs24\lang2057\langfe1033\langnp2057\insrsid14569994\charrsid14711859 Introduction and Background
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\par }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2176375\charrsid13131671 [1]\tab }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid14569994\charrsid13131671 
This is an appeal, by leave granted by the Court of Appeal on 20 November 2002, from its decision on 9 August }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid15664742\charrsid13131671 2002 }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid14569994\charrsid13131671 allowing the Commissioner\rquote s appeal }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid15664742\charrsid13131671 from}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid14569994\charrsid13131671 the decision of Byrne J in favour of the taxpayer.}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid14569994\charrsid13131671 The notice of appeal in this Court pursuant to that leave was not filed until 15 November 2007.}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid14569994\charrsid13131671 The long delay has been fully explained and the Commissioner consented to the notice of appeal being filed out of time.}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid14569994\charrsid13131671 
\par 
\par [2]\tab The appeal arises from the Commissioner\rquote s claim to assess an insurance recovery}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid15664742\charrsid13131671  by the tax}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid14569994\charrsid13131671 
payer to tax }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid15664742\charrsid13131671 at the then}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid14569994\charrsid13131671 
rate of 10% pursuant to s.3(8) of the Value Added Tax Decree 1991(Decree) read with s.15.
\par 
\par [3]\tab The insurance recovery was received by the taxpayer following the destruction by fire of }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid15664742\charrsid13131671 it}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid14569994\charrsid13131671 
s clothing factory at Lautoka in September 1994.}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4086689\charrsid13131671 The premises were insured against loss by fire }{
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\ts17\trgaph108\trleft720\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tblrsid11501381\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol\tblind828\tblindtype3 \clvertalt\clbrdrt\brdrtbl 
\clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth3420\clshdrawnil \cellx4140\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth2700\clshdrawnil \cellx6840\row 
}\pard\plain \ql \li0\ri0\nowidctlpar\intbl\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\pararsid14577401\yts17 \f36\fs22\lang3081\langfe1033\cgrid\langnp3081\langfenp1033 {
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid14711859\charrsid14711859 Plant and Equipment\cell $1,457,593.60\cell }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0 
\f36\fs22\lang3081\langfe1033\cgrid\langnp3081\langfenp1033 {\f0\fs24\lang2057\langfe1033\langnp2057\insrsid14711859\charrsid14711859 \trowd \irow1\irowband1
\ts17\trgaph108\trleft720\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tblrsid11501381\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol\tblind828\tblindtype3 \clvertalt\clbrdrt\brdrtbl 
\clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth3420\clshdrawnil \cellx4140\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth2700\clshdrawnil \cellx6840\row 
}\pard\plain \ql \li0\ri0\nowidctlpar\intbl\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\pararsid14577401\yts17 \f36\fs22\lang3081\langfe1033\cgrid\langnp3081\langfenp1033 {
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid14711859\charrsid14711859 Stock (including raw material) \cell $1,685,664.40\cell }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0 
\f36\fs22\lang3081\langfe1033\cgrid\langnp3081\langfenp1033 {\f0\fs24\lang2057\langfe1033\langnp2057\insrsid14711859\charrsid14711859 \trowd \irow2\irowband2
\ts17\trgaph108\trleft720\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tblrsid11501381\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol\tblind828\tblindtype3 \clvertalt\clbrdrt\brdrtbl 
\clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth3420\clshdrawnil \cellx4140\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth2700\clshdrawnil \cellx6840\row 
}\pard\plain \ql \li0\ri0\nowidctlpar\intbl\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\pararsid14577401\yts17 \f36\fs22\lang3081\langfe1033\cgrid\langnp3081\langfenp1033 {
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid14711859\charrsid14711859 Loss of Profit \cell $100,000.00\cell }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0 
\f36\fs22\lang3081\langfe1033\cgrid\langnp3081\langfenp1033 {\f0\fs24\lang2057\langfe1033\langnp2057\insrsid14711859\charrsid14711859 \trowd \irow3\irowband3
\ts17\trgaph108\trleft720\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tblrsid11501381\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol\tblind828\tblindtype3 \clvertalt\clbrdrt\brdrtbl 
\clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth3420\clshdrawnil \cellx4140\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth2700\clshdrawnil \cellx6840\row 
}\pard\plain \ql \li0\ri0\nowidctlpar\intbl\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\pararsid14577401\yts17 \f36\fs22\lang3081\langfe1033\cgrid\langnp3081\langfenp1033 {
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid14711859\charrsid14711859 Vehicles\cell $42,801.74\cell }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0 
\f36\fs22\lang3081\langfe1033\cgrid\langnp3081\langfenp1033 {\f0\fs24\lang2057\langfe1033\langnp2057\insrsid14711859\charrsid14711859 \trowd \irow4\irowband4
\ts17\trgaph108\trleft720\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tblrsid11501381\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol\tblind828\tblindtype3 \clvertalt\clbrdrt\brdrtbl 
\clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth3420\clshdrawnil \cellx4140\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth2700\clshdrawnil \cellx6840\row 
}\pard\plain \ql \li0\ri0\nowidctlpar\intbl\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\pararsid14577401\yts17 \f36\fs22\lang3081\langfe1033\cgrid\langnp3081\langfenp1033 {
\b\f0\fs24\lang2057\langfe1033\langnp2057\insrsid14711859\charrsid14711859 Total\cell $4,084,481.74\cell }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0 
\f36\fs22\lang3081\langfe1033\cgrid\langnp3081\langfenp1033 {\f0\fs24\lang2057\langfe1033\langnp2057\insrsid14711859\charrsid14711859 \trowd \irow5\irowband5\lastrow 
\ts17\trgaph108\trleft720\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tblrsid11501381\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol\tblind828\tblindtype3 \clvertalt\clbrdrt\brdrtbl 
\clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth3420\clshdrawnil \cellx4140\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth2700\clshdrawnil \cellx6840\row }\pard 
\ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14711859 {\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2567517\charrsid13131671 
\par }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid15664742\charrsid13131671 [4]\tab }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7302503\charrsid13131671 The Commissioner assess}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid15664742\charrsid13131671 
ed this amount }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7302503\charrsid13131671 to }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2648153\charrsid13131671 VAT}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7302503\charrsid13131671 
 pursuant to s.3(8) of the Decree which provides:}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid5447026 
\par }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid14711859\charrsid13131671 
\par }\pard \ql \li720\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid14711859 {\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7555989\charrsid13131671 
Where}{\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7302503\charrsid13131671  under a contract}{\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid15664742\charrsid13131671  of}{\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{
\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid15664742\charrsid13131671 insurance, a registered}{\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7302503\charrsid13131671  person receives an amount by way of an indemnity payment relating to a loss}
{\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7302503\charrsid13131671 incurred in respect of goods and services in the course}{
\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7555989\charrsid13131671  or}{\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7302503\charrsid13131671 
furtherance of making taxable supplies, that person shall, for the purposes of the application of this Decree to that pe
rson but not to the person by whom the payment is made, be deemed to have made a supply of goods and services to which the payment relates in the course or further}{\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid15664742\charrsid13131671 ance}{
\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7302503\charrsid13131671  of the taxable activity, at the time when the payment is received, and the amount of the payment shall be deemed to be the consideration for that supply.}{
\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 " }{\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7302503\charrsid13131671 
\par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14711859 {\f0\fs24\lang2057\langfe1033\langnp2057\insrsid14711859 
\par }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid6561469\charrsid13131671 [4]\tab Although the Decree establish a Value Added Tax Tribunal to hear appeals from the disallowance of objections }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid15664742\charrsid13131671 to }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid6561469\charrsid13131671 VAT assessments, this procedure was not followed in this case.}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid6561469\charrsid13131671 Byrne J overruled}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid6561469\charrsid13131671 the Commissioner\rquote s objection to the jurisdiction of the High Court and in the exercise of its original jurisdiction he held }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid5471256\charrsid13131671 th}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid6561469\charrsid13131671 at s.3(8)}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10960732\charrsid13131671 
 did not make the insurance recovery liable to 10% VAT under section 15(1).}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid15664742\charrsid13131671 The }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10960732\charrsid13131671 Commissioner did not maintain his objection to jurisdiction in the Court of Appeal and has not renewed his objection in this Court.}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10960732\charrsid13131671 Beyond noting that the objection was taken in the High Court but overruled, we express no view on the question.}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10960732\charrsid13131671 However we must not be taken}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7277022\charrsid13131671  as endorsing}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7277022\charrsid13131671 the }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid15664742\charrsid13131671 r}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7277022\charrsid13131671 ight of a}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7277022\charrsid13131671 taxpayer in the future to by }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid15664742\charrsid13131671 - }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7277022\charrsid13131671 pass the }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid15664742\charrsid13131671 T}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7277022\charrsid13131671 ribunal and proceed directly to the High Court.}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7302503\charrsid13131671 
\par }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7277022\charrsid13131671 
\par [5]\tab On 30 April 1991 the taxpayer was granted Tax Free Zone status pursuant to s.7(1) of the Tax Free Zones Decree 1991. This entitle}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid15664742\charrsid13131671 d}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7277022\charrsid13131671  the tax}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid15664742\charrsid13131671 payer to exemptions from c}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7277022\charrsid13131671 
ustoms duty on its imports and }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid15664742\charrsid13131671 income t}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7277022\charrsid13131671 ax and }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid15664742\charrsid13131671 income t}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7277022\charrsid13131671 ax }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid15664742\charrsid13131671 withh}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7277022\charrsid13131671 olding }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid15664742\charrsid13131671 t}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7277022\charrsid13131671 axes, but }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid15664742\charrsid13131671 it did not confer any entitlement to}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7277022\charrsid13131671  exemption }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid15664742\charrsid13131671 from }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7277022\charrsid13131671 VAT.}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7754852\charrsid13131671 
\par }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid15664742\charrsid13131671 
\par }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7754852\charrsid13131671 [6]\tab }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7996018\charrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid15664742\charrsid13131671 The tax}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid16320678\charrsid13131671 payer established its business in Fiji for the purposes of manufacturing garments principally for the export trade, and }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid5471256\charrsid13131671 the }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid16320678\charrsid13131671 bulk of its sales }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid15664742\charrsid13131671 were f}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid16320678\charrsid13131671 or export.}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid16320678\charrsid13131671 As will be explained later in th}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid15664742\charrsid13131671 ese}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid16320678\charrsid13131671  reasons }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid15664742\charrsid13131671 t}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid16320678\charrsid13131671 he taxpayer }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid15664742\charrsid13131671 is entitled }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid16320678\charrsid13131671 
to significant benefits under the Decree.}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid16320678\charrsid13131671 
However, it did make sales of garments in the domestic market and was not entitled to those benefits}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11797378\charrsid13131671  in respect of such sales.}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11797378\charrsid13131671 It was a registered person for the purposes of the Decree.
\par 
\par }{\b\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11797378\charrsid14711859 Scheme of the Act}{\b\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7277022\charrsid14711859  
\par }{\b\f0\fs24\lang2057\langfe1033\langnp2057\insrsid5447026\charrsid13131671 
\par }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11797378\charrsid13131671 [7]\tab Section 15 is the section which imposes the tax.}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11797378\charrsid13131671 It }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid15664742\charrsid13131671 relevantly }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11797378\charrsid13131671 provide}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid15664742\charrsid13131671 d}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11797378\charrsid13131671 :
\par 
\par }\pard \ql \li720\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid14711859 {\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4462661\charrsid13131671 (}{
\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4462661\charrsid13131671 1)\tab }{\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid992058\charrsid13131671 
Subject to the provisions of this Decree, the tax shall be charged in accordance with the provisions of this Decree at the rate of 10% }{\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4462661\charrsid13131671 on the supply}{
\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid992058\charrsid13131671  (but not including any exempt supply}{\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4462661\charrsid13131671 ) }{
\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid992058\charrsid13131671 in Fiji o}{\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4462661\charrsid13131671 f}{\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid992058\charrsid13131671  goods }{
\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4462661\charrsid13131671 \'85}{\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid992058\charrsid13131671  by }{\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4462661\charrsid13131671 a }{
\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid992058\charrsid13131671 registered person in the course or furtherance of the taxable activity carried on by that person, by reference to the value of that supply.}{
\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11797378\charrsid13131671 
\par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14711859 {\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid992058\charrsid13131671 
\par }\pard \ql \li720\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid14711859 {\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4462661\charrsid13131671 (2)\tab }{
\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid992058\charrsid13131671  Where, but for th}{\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4462661\charrsid13131671 is}{\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid992058\charrsid13131671 
 subsection, a supply of goods and services would }{\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4462661\charrsid13131671 be charged with tax under sub}{\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid992058\charrsid13131671 sec}{
\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4462661\charrsid13131671 tion (1) of this Section, any such}{\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid992058\charrsid13131671  supply shall be charged at the rate of}{
\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4462661\charrsid13131671 zero percent }{\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid992058\charrsid13131671 where that supply is a}{
\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4462661\charrsid13131671  zero-}{\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid992058\charrsid13131671 -rated supply.}{\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{
\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid992058\charrsid13131671  
\par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14711859 {\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid15890856\charrsid13131671 
\par }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4462661\charrsid13131671 [8}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid992058\charrsid13131671 ]\tab The }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4462661\charrsid13131671 expressions }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid992058\charrsid13131671 supply}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4462661\charrsid13131671 ,}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid15890856\charrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid992058\charrsid13131671 goods}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid992058\charrsid13131671 , }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid992058\charrsid13131671 tax}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4462661\charrsid13131671 able}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid992058\charrsid13131671  activity}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid992058\charrsid13131671 , }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid992058\charrsid13131671 exempt supply}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid15890856\charrsid13131671 , }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid12851721\charrsid13131671 zero}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid15890856\charrsid13131671 -}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid14221815\charrsid13131671 rated }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid15890856\charrsid13131671 supply}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid15890856\charrsid13131671 , and }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid15890856\charrsid13131671 tax}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4462661\charrsid13131671 able su}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid15890856\charrsid13131671 pply}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid6884632\charrsid13131671  are defined by the Decree.}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4462661\charrsid13131671 The d}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7741561\charrsid13131671 efinition of services is not relevant }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2648153\charrsid13131671 in this case. In normal circumstances one would never describe a permanent factory building as goods but this expression is defined in s.2(1)}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4462661\charrsid13131671  as}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2648153\charrsid13131671  meaning}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  "}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2648153\charrsid13131671 all kinds of person}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4462661\charrsid13131671 a}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2648153\charrsid13131671 
l and real property; but does not include choses in}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4462661\charrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2648153\charrsid13131671 action or money}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2648153\charrsid13131671 . Accordingly the insurance recovery was in respect of }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2648153\charrsid13131671 goods}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2648153\charrsid13131671 
 owned by the taxpayer apart from the $100,000.00 paid for loss of profits.}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2648153\charrsid13131671 The Commissioner ha}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid8026796\charrsid13131671 s}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2648153\charrsid13131671  long }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid8026796\charrsid13131671 accepted}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2648153\charrsid13131671 that this sum is not chargeable to VAT.}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2648153\charrsid13131671 This concession was correct}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid8026796\charrsid13131671 ,}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2648153\charrsid13131671 
 because the loss was in respect of profits which the taxpayer did not receive. 
\par 
\par }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7671755\charrsid13131671 [}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid8983616\charrsid13131671 9}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7671755\charrsid13131671 ]\tab Exempt supply is }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid8983616\charrsid13131671 defined }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7671755\charrsid13131671 in s.2(1) as m}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid8983616\charrsid13131671 eaning}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7671755\charrsid13131671 a supply described in the First Schedule.}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7671755\charrsid13131671 It is common ground }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid8983616\charrsid13131671 that }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7671755\charrsid13131671 
the taxpayer\rquote s}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7671755\charrsid13131671 ordinary activities, }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid8983616\charrsid13131671 and}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7671755\charrsid13131671 any deemed supply pursuant to s.3(8) }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid8983616\charrsid13131671 were not}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7671755\charrsid13131671 exempt suppl}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid8983616\charrsid13131671 ies}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7671755\charrsid13131671 .}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7671755\charrsid13131671 Taxable supply is }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid8983616\charrsid13131671 defined }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7671755\charrsid13131671 in }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid5471256\charrsid13131671 s.2(1),}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7671755\charrsid13131671  read with s}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid8983616\charrsid13131671 ubsection }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7671755\charrsid13131671 
(2) as any supply of goods or services }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7671755\charrsid13131671 which is charged with tax pursuant to section 15.}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 " }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid8983616\charrsid13131671 Zero}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7671755\charrsid13131671 -rated supply is }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid8983616\charrsid13131671 defined}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7671755\charrsid13131671  as a supply described in the Second Schedule.}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid8983616\charrsid13131671 The r}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7671755\charrsid13131671 elevant items in that schedule were }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid8983616\charrsid13131671 1 and 4}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7671755\charrsid13131671 .}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7671755\charrsid13131671 Item 1}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid8983616\charrsid13131671  comprises }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7671755\charrsid13131671 
the supply of goods entered under the Customs Act for export and exported by the supplier.}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7671755\charrsid13131671 Item 4 comp}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid8983616\charrsid13131671 rises }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7671755\charrsid13131671 the }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid8983616\charrsid13131671 
supply of goods which the tax}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7671755\charrsid13131671 p}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid8983616\charrsid13131671 ayer will enter for export }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid8983616\charrsid13131671 in the}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7671755\charrsid13131671  course of, }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid8983616\charrsid13131671 or as}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7671755\charrsid13131671  a condition of making that supply}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7671755\charrsid13131671 , provided they are}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7671755\charrsid13131671 
exported within 28 days otherwise the supply is taxable under s}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid6102762\charrsid13131671 .}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7671755\charrsid13131671 15(1).
\par 
\par }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7872208\charrsid13131671 [1}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid6102762\charrsid13131671 0}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7872208\charrsid13131671 ]\tab }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7671755\charrsid13131671 Section 3(1) defines}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7872208\charrsid13131671  supply as including }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7872208\charrsid13131671 all forms of supply}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7872208\charrsid13131671 .}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7872208\charrsid13131671 Later subsections extend its meaning to various transactions which otherwise might not, or would not}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid5471256\charrsid13131671 ,}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7872208\charrsid13131671  be within its ordinary meaning.}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7872208\charrsid13131671 Section 3(8) is one of those subsections.}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7872208\charrsid13131671 Two other
}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid6102762\charrsid13131671 s}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7872208\charrsid13131671  may be noticed.}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7872208\charrsid13131671 Section 3(4) and (11) }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid6102762\charrsid13131671 deem a }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7872208\charrsid13131671 
supply to have }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid5471256\charrsid13131671 o}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7872208\charrsid13131671 ccurred when a registered person ceases to carry on business, or a }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7872208\charrsid13131671 taxable activity}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7872208\charrsid13131671  is disposed }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid5471256\charrsid13131671 of }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7872208\charrsid13131671 as a going concern.

\par 
\par [1}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid6102762\charrsid13131671 1}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7872208\charrsid13131671 ]\tab Section}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid6102762\charrsid13131671  }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7872208\charrsid13131671 4 (1)}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10316417\charrsid13131671 (a) relevantly defines taxable activity as meaning:
\par 
\par }\pard \ql \li720\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid14711859 {\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{
\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10316417\charrsid13131671 (a)}{\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10316417\charrsid13131671 
any activity which is carried on continuously or regularly by any person, whether or not for pecuniary profit, and involves or is intended to involve in }{\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid6102762\charrsid13131671 whole or in part the }{
\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10316417\charrsid13131671 supply of goods\'85 to another person for a consideration; and includes any such activity carried on in the form of a business\'85. trade,}{
\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10316417\charrsid13131671 manufacture}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10316417\charrsid13131671 \'85}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 " }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid992058\charrsid13131671 
\par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14711859 {\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7872208\charrsid13131671 
\par }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid6102762\charrsid13131671 [12}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10316417\charrsid13131671 ]\tab This definition does not incorporate any requirement that the supply of goods}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10316417\charrsid13131671 should be taxable.}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10316417\charrsid13131671 Any business activity carried on continuously or regularly which is intended to involve the supply of goods to another for consideration is within the definition. 
\par 
\par }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid6102762\charrsid13131671 [13]\tab Byrne J }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10316417\charrsid13131671 held, and }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid6102762\charrsid13131671 
this has been }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10316417\charrsid13131671 common ground since, despite the }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7955054\charrsid13131671 apparent incongruity,
 that the supply of goods and services is a taxable supply, although that}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid6102762\charrsid13131671  supply is zero}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7955054\charrsid13131671 
-rated, so that no tax is actually payable.}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7955054\charrsid13131671 This is clearly correct, because of}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7955054\charrsid13131671 the definition of taxable supply and the terms of s.15 quoted above.
\par 
\par }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid6102762\charrsid13131671 [14}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7955054\charrsid13131671 ]\tab A person who carries on a business}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4066070\charrsid13131671  limited to making exempt supplies is not required or entitled to be registered }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2773960\charrsid13131671 (}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4066070\charrsid13131671 s.}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13056017\charrsid13131671 (}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4066070\charrsid13131671 22}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13056017\charrsid13131671 )}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2773960\charrsid13131671 )}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13056017\charrsid13131671 .}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13056017\charrsid13131671 A person who carries o}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2773960\charrsid13131671 
n a business limited to making zero}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13056017\charrsid13131671 -rated, and therefore taxable supplies, is required to be registered (above).}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13056017\charrsid13131671 An unregistered person }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2773960\charrsid13131671 who}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13056017\charrsid13131671 
 makes exempt supplies }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2773960\charrsid13131671 bears}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13056017\charrsid13131671  input tax }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2773960\charrsid13131671 charged by his suppliers }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13056017\charrsid13131671 
on goods or services supplied to him for the purposes of his business and is not entitled to a refund of that input tax.}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10316417\charrsid13131671 
\par }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13056017\charrsid13131671 
\par }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2773960\charrsid13131671 [15}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13056017\charrsid13131671 ]\tab A registered person, such as the taxpayer, who was engaged in the business}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2773960\charrsid13131671  of making}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid12851721\charrsid13131671 zero}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13056017\charrsid13131671 -rated supplies is not charged output tax on its supplies, and is entitled, under s.39}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2773960\charrsid13131671 ,}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13056017\charrsid13131671  to a refund of }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2773960\charrsid13131671 the }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13056017\charrsid13131671 
input tax it has }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2773960\charrsid13131671 been charged by its suppliers on}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13056017\charrsid13131671 goods and services }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2773960\charrsid13131671 supplied }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13056017\charrsid13131671 
for its taxable activity.}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13056017\charrsid13131671 Thus in the}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid12851721\charrsid13131671 
 result export sales which are zero}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13056017\charrsid13131671 -rated d}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2773960\charrsid13131671 o}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13056017\charrsid13131671  not bear any VAT imposed under th}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2773960\charrsid13131671 e}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13056017\charrsid13131671  Decree.}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13056017\charrsid13131671 Although the ta}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13247902\charrsid13131671 xpayer was not exempted by its T}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13056017\charrsid13131671 ax }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13247902\charrsid13131671 F}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13056017\charrsid13131671 ree }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13247902\charrsid13131671 Z}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13056017\charrsid13131671 one}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13247902\charrsid13131671  status from the Decree }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2773960\charrsid13131671 the }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13247902\charrsid13131671 result in practice was that it was not liable to output tax on its export sales within Schedule 2, and it was exempted, through refunds}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2773960\charrsid13131671 ,}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13247902\charrsid13131671  for the input tax on goods and services supplied to it in }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2567517\charrsid13131671 respect of its}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2773960\charrsid13131671  taxable supplies for export.}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2773960\charrsid13131671 I}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2567517\charrsid13131671 
t remained liable for output tax on its sales on the domestic market, receiving an off set against such tax for the input tax }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2773960\charrsid13131671 it had }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid5471256\charrsid13131671 borne}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2773960\charrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2567517\charrsid13131671 in respect of such sales.}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2567517\charrsid13131671 
\par }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2567517\charrsid14711859 
\par }{\b\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2567517\charrsid14711859 The indemnity payment for the fixed assets and raw materials}{\b\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2773960\charrsid14711859  }{
\b\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2567517\charrsid14711859 
\par }{\b\f0\fs24\ul\lang2057\langfe1033\langnp2057\insrsid2567517\charrsid13131671 
\par }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2567517\charrsid13131671 [1}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2773960\charrsid13131671 6}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2567517\charrsid13131671 ]\tab 
The first issue in the appeal is whether s.3(8) operates on s.15(1) to impose VAT on those parts of the insurance recovery that related to }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2567517\charrsid13131671 goods}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2567517\charrsid13131671  as defined whi}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid5471256\charrsid13131671 ch were not intended by the tax}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2567517\charrsid13131671 payer to be the subject of a taxable supply }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2567517\charrsid13131671 in the course or furtherance of the }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid16138320\charrsid13131671 
taxable activity}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid16138320\charrsid13131671 , that is the building,}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid5446390\charrsid13131671 
 plant and equipment, raw materials and motor vehicles.
\par 
\par }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2773960\charrsid13131671 [17}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid5446390\charrsid13131671 ]\tab Byrne J held, and the appellant maintains}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid5471256\charrsid13131671 ,}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid5446390\charrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2773960\charrsid13131671 th}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid5446390\charrsid13131671 at s.3(8) does not bring to tax an insurance recovery in respect of general business assets which the taxpay}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2773960\charrsid13131671 
er did not intend to supply in the}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid5446390\charrsid13131671  course of its activity.}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid5446390\charrsid13131671 The Court of Appeal }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2773960\charrsid13131671 held}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid5446390\charrsid13131671  otherwise.
}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2773960\charrsid13131671 
\par }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid5446390\charrsid13131671 
\par [1}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2773960\charrsid13131671 8}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid5446390\charrsid13131671 ]\tab The point }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2773960\charrsid13131671 requires }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid5446390\charrsid13131671 a close analysis of the language of s.3(8). The indemnity payment within the section must be one }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2773960\charrsid13131671 relating t}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid5446390\charrsid13131671 o a loss incurred in respect of goods \'85 in the course or furtherance of making taxable supplies.
}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 " }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid5446390\charrsid13131671 If this condition is satisfied the insured receiving }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2773960\charrsid13131671 th}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid5446390\charrsid13131671 at payment is deemed at that time to have made }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid5471256\charrsid13131671 a}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid5446390\charrsid13131671  supply of the goods to which the payment relates }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 
"}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid5446390\charrsid13131671 in the course or furtherance }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid3948285\charrsid13131671 of the taxable }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2773960\charrsid13131671 activity}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid5446390\charrsid13131671 .}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid5446390 
\par }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid14711859\charrsid13131671 
\par }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11947343\charrsid13131671 [}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10311015\charrsid13131671 19}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid5471256\charrsid13131671 ]\tab The appellant}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11947343\charrsid13131671  adopt}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10311015\charrsid13131671 ed}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11947343\charrsid13131671 
 the reasoning of Byrne J on the disti}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10311015\charrsid13131671 nction between }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10311015\charrsid13131671 in the course or}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11947343\charrsid13131671  furtherance of making taxable}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10311015\charrsid13131671  supplies }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11947343\charrsid13131671  in the first }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10311015\charrsid13131671 limb}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11947343\charrsid13131671 of the s}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10311015\charrsid13131671 ubsection, and }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10311015\charrsid13131671 in the course or}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11947343\charrsid13131671  furtherance of }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10311015\charrsid13131671 the }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11947343\charrsid13131671 
taxable activity}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11947343\charrsid13131671  in }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10311015\charrsid13131671 the}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11947343\charrsid13131671 second.}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10311015\charrsid13131671 The s}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11947343\charrsid13131671 ubsection makes this distinction, and it was submitted, it must be respected. 
\par 
\par [2}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10311015\charrsid13131671 0}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11947343\charrsid13131671 ]\tab The distinction was said to be between a particular taxable supply referred to in the first }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid5471256\charrsid13131671 limb}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11947343\charrsid13131671  and the business as a whole which is referred to in the second.}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11947343\charrsid13131671 Th}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10311015\charrsid13131671 us}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11947343\charrsid13131671  the l}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10311015\charrsid13131671 oss of a}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11947343\charrsid13131671 particular}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11947343\charrsid13131671 consignment of goods in transit to }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10311015\charrsid13131671 a customer would be a }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10311015\charrsid13131671 loss in the}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11947343\charrsid13131671  course or furtherance of making taxable suppl}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10311015\charrsid13131671 ies}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 
"}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11947343\charrsid13131671 , but not }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid5471256\charrsid13131671 a }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11947343\charrsid13131671 
loss by fire of the physical asset}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10311015\charrsid13131671 s}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11947343\charrsid13131671  of the whole business. The }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10311015\charrsid13131671 latter}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10631174\charrsid13131671  loss was not}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10311015\charrsid13131671 ,}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10631174\charrsid13131671  so it was submitted, }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10311015\charrsid13131671 a }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10631174\charrsid13131671 
loss incurred }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10631174\charrsid13131671 in the course o}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10311015\charrsid13131671 r}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10631174\charrsid13131671  furtherance of making taxable suppl}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10311015\charrsid13131671 ies}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10631174\charrsid13131671 .}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11947343\charrsid13131671 
\par }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10631174\charrsid13131671 
\par }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10311015\charrsid13131671 [21}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10631174\charrsid13131671 ]\tab The submission would have considerable force if the first l}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10311015\charrsid13131671 imb}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10631174\charrsid13131671  of the subsection was limited to losses }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10631174\charrsid13131671 in the course of making taxable suppl}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10311015\charrsid13131671 ies}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10631174\charrsid13131671  but it fails to adequately deal with losses }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10631174\charrsid13131671 
in furtherance of making taxable suppl}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10311015\charrsid13131671 ies}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10631174\charrsid13131671 .}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 " }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10631174\charrsid13131671 Moreover, the distinction fastened on by the taxpayer prove}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10311015\charrsid13131671 s}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid5471256\charrsid13131671  on close analysis to be }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10311015\charrsid13131671 illusory}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11412719\charrsid13131671 
.}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10631174\charrsid13131671 
\par 
\par [2}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10311015\charrsid13131671 2}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10631174\charrsid13131671 ]\tab The loss of the taxpayer}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10311015\charrsid13131671 \rquote }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10631174\charrsid13131671 s }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11412719\charrsid13131671 factory}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10631174\charrsid13131671 by fire}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11412719\charrsid13131671  cause}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid5471256\charrsid13131671 d}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11412719\charrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10311015\charrsid13131671 a}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11412719\charrsid13131671  loss in respect of goods which were }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11412719\charrsid13131671 
in.. .furtherance of making taxable supplies.}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 " }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11412719\charrsid13131671 The language is clumsy but the meaning is clear.}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11412719\charrsid13131671 The factory, the plant }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4934756\charrsid13131671 
and equipment, the raw materials, and the motor vehicles were good}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7095134\charrsid13131671 s}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4934756\charrsid13131671  }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7095134\charrsid13131671 as defined }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid5471256\charrsid13131671 which the taxpayer possessed,}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4934756\charrsid13131671  used and intended to use for the purpose of }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4934756\charrsid13131671 
making taxable suppl}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7095134\charrsid13131671 ies}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4934756\charrsid13131671 , that is, }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7095134\charrsid13131671 in }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4934756\charrsid13131671 \'85}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11412719\charrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4934756\charrsid13131671 furtherance of }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4934756\charrsid13131671  doing so.}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4934756\charrsid13131671 
\par 
\par }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7095134\charrsid13131671 [23}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4934756\charrsid13131671 ]\tab This construction is confirmed when }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid5471256\charrsid13131671 one reads in}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4934756\charrsid13131671 to s.3(8) the relevant definitions. Taxable supply is }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7095134\charrsid13131671 defined}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4934756\charrsid13131671 in s.3(1) }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid5471256\charrsid13131671 a}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4934756\charrsid13131671 s meaning any supply charge}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7095134\charrsid13131671 d}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4934756\charrsid13131671  with tax pursuant to s.15.}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4934756\charrsid13131671 This }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7095134\charrsid13131671 section }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4934756\charrsid13131671 charge}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7095134\charrsid13131671 s}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4934756\charrsid13131671  with tax }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7095134\charrsid13131671 a }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4934756\charrsid13131671 supply }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7095134\charrsid13131671 of }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4934756\charrsid13131671 goods by }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7095134\charrsid13131671 a }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4934756\charrsid13131671 registered person }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4934756\charrsid13131671 in the course or furtherance of 
}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7095134\charrsid13131671 a }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4934756\charrsid13131671 taxable activity carried on by that person.}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4934756\charrsid13131671  That expression is }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7095134\charrsid13131671 defined}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4934756\charrsid13131671 
 in s.4(1) as }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4934756\charrsid13131671 any activity which is carried on continuously or regularly \'85 }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7095134\charrsid13131671 and }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4934756\charrsid13131671 involves or }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7095134\charrsid13131671 is }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4934756\charrsid13131671 intended to involve\'85the supply of goods \'85 to ano}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid1448721\charrsid13131671 ther person for a consideration}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4934756\charrsid13131671 .}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4934756\charrsid13131671 
\par 
\par [2}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7095134\charrsid13131671 4}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4934756\charrsid13131671 ]\tab Sectio}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7095134\charrsid13131671 n 3(8) expa}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4934756\charrsid13131671 nded by the incorporation of these definitions reads:
\par 
\par }\pard \ql \li720\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid14711859 {\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4934756\charrsid13131671 
Where under a contract of insurance, a registered person receives }{\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid14185135\charrsid13131671 \'85}{\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid9788910\charrsid13131671  an indemnity }{
\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4934756\charrsid13131671 payment relating to a loss incurred in respect of goods}{\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid14185135\charrsid13131671 \'85}{
\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4934756\charrsid13131671  in the course or furtherance of making taxable supplies}{\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid14185135\charrsid13131671 ... }{
\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7095134\charrsid13131671 [that is ss.3(1) and 15(1)]\'85}{\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\b\i\f0\fs24\ul\lang2057\langfe1033\langnp2057\insrsid7095134\charrsid13131671 
of goods}{\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7095134\charrsid13131671  \'85 }{\b\i\f0\fs24\ul\lang2057\langfe1033\langnp2057\insrsid7095134\charrsid13131671 in the course or f}{
\b\i\f0\fs24\ul\lang2057\langfe1033\langnp2057\insrsid10421157\charrsid13131671 urtherance of a taxable activity}{\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid7095134\charrsid13131671  }{
\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4934756\charrsid13131671 that person shall}{\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid14185135\charrsid13131671 \'85}{\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4934756\charrsid13131671 
be deemed to have made a supply }{\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid9788910\charrsid13131671 of}{\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid4934756\charrsid13131671 
goods}{\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid14185135\charrsid13131671 \'85}{\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid9788910\charrsid13131671  to which the payment relates in the course or furtherance of the taxable activity,}{
\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid14185135\charrsid13131671  }{\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10421157\charrsid13131671 [that is s.4(1)}{\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid1448721\charrsid13131671 ]}{
\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10421157\charrsid13131671  as }{\b\i\f0\fs24\ul\lang2057\langfe1033\langnp2057\insrsid10421157\charrsid13131671 an}{\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10421157\charrsid13131671  a}{
\b\i\f0\fs24\ul\lang2057\langfe1033\langnp2057\insrsid11083187\charrsid13131671 ctivity carried on continuously}{\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11083187\charrsid13131671 \'85}{
\b\i\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10421157\charrsid13131671  which }{\b\i\f0\fs24\ul\lang2057\langfe1033\langnp2057\insrsid11083187\charrsid13131671 is intended to involve the supply of goods\'85 to another person for a consideration}{
\b\i\f0\fs24\ul\lang2057\langfe1033\langnp2057\insrsid9788910\charrsid13131671 .}{\b\i\f0\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13131671 "}{\b\i\f0\fs24\ul\lang2057\langfe1033\langnp2057\insrsid10631174\charrsid13131671  
\par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14711859 {\f0\fs24\ul\lang2057\langfe1033\langnp2057\insrsid5446390\charrsid13131671 
\par }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11083187\charrsid13131671 [2}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10421157\charrsid13131671 5}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11083187\charrsid13131671 ]\tab The }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10421157\charrsid13131671 taxpayer\rquote s taxable}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11083187\charrsid13131671  activity (business) involved and was intended to involve the supply of goods for 
}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10421157\charrsid13131671 a }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11083187\charrsid13131671 consideration, and the loss from the fire was incurred both (in a business conducted)}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11083187\charrsid13131671  in \'85 furtherance of making taxable supplies}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10421157\charrsid13131671  and}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  "}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10421157\charrsid13131671 in the course or}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11083187\charrsid13131671  furtherance of the taxable activity.}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 " }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10421157\charrsid13131671 
The two limbs of s.3(8) therefore end up having the same meaning.
\par 
\par [26]\tab }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11083187\charrsid13131671 We therefore reject the appellant\rquote s first submission that a loss incurred }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11083187\charrsid13131671 in respect of the business}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10421157\charrsid13131671 ,}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11083187\charrsid13131671  that is the business structure}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10421157\charrsid13131671 ,}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11083187\charrsid13131671 
 is not within s.3(8) and hold that VAT was payable on that part of}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11083187\charrsid13131671 the insurance recovery received for the taxpayer}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10421157\charrsid13131671 \rquote }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11083187\charrsid13131671 s building, plant and equipment, raw materials, and motor vehicles.}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11083187\charrsid13131671 
\par 
\par }{\b\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11083187\charrsid14711859 The Indemnity Payment for the Stock
\par }{\b\f0\fs24\ul\lang2057\langfe1033\langnp2057\insrsid11083187\charrsid13131671 
\par }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10421157\charrsid13131671 [27]\tab C}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11083187\charrsid13131671 ounsel for the appellant submitted, as a f}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10421157\charrsid13131671 all}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11083187\charrsid13131671  back position}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10421157\charrsid13131671 ,}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11083187\charrsid13131671  that }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11083187\charrsid13131671 the evident purpose of s.3(8)\'85}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11083187\charrsid13131671 is to exact VAT in cases where there has been a loss of goods which, if they had not be}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10421157\charrsid13131671 en}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11083187\charrsid13131671 lost, would have been supplied}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid11083187\charrsid13131671 by the registered person so as to have attracted VAT\'85 where an indemnity is received }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10421157\charrsid13131671 in}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid3296921\charrsid13131671 respect of that loss.}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 " }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid3296921\charrsid13131671 Section 3(8) refers to }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid3296921\charrsid13131671 the taxable activity}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid3296921\charrsid13131671 
 of the registered person, which in this case was principally the supply of goods for export.}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10421157\charrsid13131671 Accordingly the bulk }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid3296921\charrsid13131671 of its taxable supplies }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10421157\charrsid13131671 were zero-rated. }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid3296921\charrsid13131671 Since the d}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10421157\charrsid13131671 eemed }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid3296921\charrsid13131671 
supply within s.3(8) was for th}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10421157\charrsid13131671 e tax}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid3296921\charrsid13131671 payer\rquote s taxable activity}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10421157\charrsid13131671 , i}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid3296921\charrsid13131671 t followed, so it was submitted, that the deem}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10421157\charrsid13131671 ed}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid3296921\charrsid13131671  supply was also }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid12851721\charrsid13131671 z}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid3296921\charrsid13131671 ero--rated so that VAT was not payable on the insurance recovery for the stock.
\par 
\par }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10421157\charrsid13131671 [28]\tab T}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid3296921\charrsid13131671 hese submissions }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10421157\charrsid13131671 at}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid3296921\charrsid13131671 tempt to read words}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid9643862\charrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10421157\charrsid13131671 into}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid9643862\charrsid13131671  s.3(8) which are not there.}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10421157\charrsid13131671 The s}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid9643862\charrsid13131671 ubsection deem}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10421157\charrsid13131671 s}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid9643862\charrsid13131671 
 something to have occurred which did not occur in fact, that is it creates}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10421157\charrsid13131671  a statutory fiction.}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10421157\charrsid13131671 However}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid9643862\charrsid13131671  that fiction is defined and limited by the language of the subsection.}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10421157\charrsid13131671 The fiction }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid9643862\charrsid13131671 
is that the registered person is deemed to have made a supply of goods }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 "}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid9643862\charrsid13131671 in the course or furtheranc
e of the taxable activity.}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671 " }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid9643862\charrsid13131671 That is the limit}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10421157\charrsid13131671 
 of the}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid9643862\charrsid13131671  fiction.
\par 
\par [29]\tab A}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10421157\charrsid13131671 ccordingly }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid9643862\charrsid13131671 s.15(1) applies to th}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid10421157\charrsid13131671 at}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid9643862\charrsid13131671  deemed supply }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13633103\charrsid13131671 unless that }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid9643862\charrsid13131671 supply is within s.15(2) and zero-rated.}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13633103\charrsid13131671 However}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13633103\charrsid13131671 the Second Schedule provisions }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid9643862\charrsid13131671 
previously referred to cannot apply because the stock }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13633103\charrsid13131671 destroyed }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid9643862\charrsid13131671 in the fire was n}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13633103\charrsid13131671 ot}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid9643862\charrsid13131671  exported.}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid9643862\charrsid13131671 Since s.15(2) does not apply the deemed supply is within s.15(1) and VAT is payable accordingly.
\par 
\par [30]\tab }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13633103\charrsid13131671 T}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid9643862\charrsid13131671 he appeal fails for these reasons, wh}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid2962080\charrsid13131671 ich are substantially those of }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid9643862\charrsid13131671 the Court of Appeal, and it should be dismissed with costs.}{
\f0\fs24\lang2057\langfe1033\langnp2057\insrsid618883\charrsid13131671 
\par }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13633103\charrsid13131671 
\par [31]\tab The parties agreed that if the appeal failed judgment should be entered for the Commissioner on his Cross Action for $350,125.59 in accordance with the Notice of Amended Assessment
 of 14 May 1996 with effect from the date of the publication of our reasons.}{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13131671  }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13633103\charrsid13131671 Judgment is entered accordingly.
\par }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid618883\charrsid13131671 
\par }\pard \qc \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14711859 {\b\f0\fs24\lang2057\langfe1033\langnp2057\insrsid618883\charrsid13131671 Hon Justice Keith Mason
\par }{\b\f0\fs24\lang2057\langfe1033\langnp2057\insrsid618883\charrsid14711859 Judge of the Supreme Court
\par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid6371115 {\b\f0\fs24\lang2057\langfe1033\langnp2057\insrsid618883\charrsid13131671 
\par }\pard \qc \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14711859 {\b\f0\fs24\lang2057\langfe1033\langnp2057\insrsid618883\charrsid14711859 Hon Justice Kenneth Handley
\par Judge of the Supreme Court
\par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid6371115 {\b\f0\fs24\lang2057\langfe1033\langnp2057\insrsid618883\charrsid13131671 
\par }\pard \qc \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14711859 {\b\f0\fs24\lang2057\langfe1033\langnp2057\insrsid618883\charrsid13131671 Hon Justice Ronald Sackville}{
\b\f0\fs24\lang2057\langfe1033\langnp2057\insrsid13056017\charrsid13131671 
\par }{\b\f0\fs24\lang2057\langfe1033\langnp2057\insrsid618883\charrsid14711859 Judge of the Supreme Court
\par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14711859 {\b\f0\fs24\ul\lang2057\langfe1033\langnp2057\insrsid618883\charrsid13131671 
\par }{\b\f0\fs24\lang2057\langfe1033\langnp2057\insrsid14812734\charrsid14711859 Solicitors:}{\b\f0\fs24\lang2057\langfe1033\langnp2057\insrsid618883\charrsid14711859 
\par }{\f0\fs24\lang2057\langfe1033\langnp2057\insrsid14812734\charrsid14711859 Fa and Company, Suva for the Petitioner
\par Legal Officer \endash  Commissioner Inland Revenue, Suva for the Respondent
\par }}