Value added tax

It was settled law that the test as to whether an activity was a business was whether it had been: (a) a “serious undertaking earnestly pursued”; (b) pursued with reasonable continuity; (c) substantial in amount; (d) conducted regularly on sound and recognised business principles; (e) predominantly concerned with the making of taxable supplies to consumers for a consideration; and (f) such as consisted of taxable supplies of a kind commonly made by those who seek to make profit from them. Further, supplies could be supplies even if they were made without realising profit, or even having the intention of realising a profit. The receipt by a statutory body of funds from the government in order to carry out the purpose for which it had been established could not be an economic activity. There was a very significant distinction between a state outsourcing to an independent third party, which could be profit making, whether or not it actually was, and the state