Customs and Excise Commissioners v. Tarmac Roadstone Holdings Ltd., [1987] BTC 5074 (C.A.)

In finding that a parent corporation was making a taxable supply of the services of its employees to its subsidiary, Slade L.J. stated (p. 5084):

"If A agrees with B that B will perform certain services for A and that he will reimburse B for certain specified expenses which will be incurred by B in the performance of both services, the agreement to reimburse is, in my judgment, well capable of constituting sufficient consideration in law for those services. The bargain may be a bad one from B's point of view, but the courts do not enquire into the monetary adequacy of consideration."

In finding that employees of a parent corporation whose services were provided to a subsidiary had not been retained by the parent as agent for the subsidiary, Slade L.J. noted that only the parent was entitled to enforce the relevant service contracts because the employees had never agreed to serve the subsidiary.

In finding that employees of a parent corporation whose services were provided to a subsidiary had not been retained by the parent as agent for the subsidiary, Slade L.J. noted that only the parent was entitled to enforce the relevant service contracts because the employees had never agreed to serve the subsidiary.