Charge related more to costs in taking over the subsidiary
In Newmir plc  BVC 961, a charge to its wholly-owned subsidiary for ‘management services’ seemed to relate more to its costs in taking over the subsidiary than to supplies made to it. The tribunal decided that Newmir was not carrying on an economic activity, thus it could not register for VAT, charge VAT to its subsidiary and reclaim VAT on the costs of the takeover.
Vague intention possibly to levy an unspecified charge if funds are available
In Norseman Gold plc v R & C Commrs  BVC 8, the issue was whether Norseman: