“The problem for the tribunal, accordingly, was one of interpretation of s 2(2)( b ) of the 1972 Act in the context in which it appears in the Act and they resolved that problem by holding that the word ‘business’ for the purposes of that subsection connotes the carrying on by the taxable person of activities of a commercial nature having as their object the pursuit of profit or gain. In so interpreting s 2(2) the tribunal followed all earlier decisions of the tribunal elsewhere in Britain in cases in which the construction of the subsection was in issue. On their finding that the association does not seek to make profits the reason for the decision reached by the tribunal was that they did not consider that there was any commercial element in the association’s activities.”
“In my opinion it will never be possible or desirable to define exhaustively ‘business’ within the meaning of s 2(2)( b ). What one must do is to discover what are the activities of the taxable person in course of which taxable supplies are made. If these activities are, as in this case, predominantly concerned with the making of taxable supplies to consumers for a consideration it seems to me to require no straining of the language of s. 2(2)(b) of the 1972 Act to enable on to conclude that the taxable person is in the ‘business’ of making taxable supplies, and that taxable supplies which he makes are supplies made in the course of carrying on that business, especially if, as in this case, the supplies are of a kind which, subject to differences of detail, are made commercially by those who seek to profit by them.”
“The word ‘business’ in its dictionary meaning can include ‘occupation’ or ‘function’ and in my opinion the word ‘business’ as used in s 45(1) and therefore in s 2(2) is sufficiently comprehensive to include within its meaning ‘occupation’ or ‘function’. An occupation does not necessarily have as one of its objects the pursuit or promotion of profit or gain and a function can be discharged without yielding a profit; nor can it be said that the word ‘business’ is necessarily tied to such occupations or callings as are wholly commercial and pursued for the purpose of profit or gain. Indeed it is commonplace that for perfectly sound commercial reasons certain commercial undertakings can be carried on with the deliberate purpose of making neither a profit nor a gain or even in certain circumstances a loss, yet the absence of an objective of profit or gain should not and would not deprive the undertaking of the appellation of business.”