William Watson (Slaughter and May) examines the First-tier Tribunal’s decision and its wider commercial implications.
For much of last year Euromoney Institutional Investor plc v HMRC [2021] UKFTT 61 (TC) (Euromoney) was paired with Blackrock Holdco 5 LLC v HMRC [2020] UKFTT 443 (TC) (Blackrock) as a potentially ground-breaking case focusing on a statutory purpose test. Both have now resulted in victory for the taxpayer through the agency of Kevin Prosser QC and both show yet again the importance of factual evidence in any purpose case. Moreover they are both examples – of which there are not many – where the First-tier tribunal (FTT) has found for the taxpayer even though it concluded that there was a ‘bad’ purpose. But in both instances I fear we will have to await further developments before drawing any very firm conclusions on the central technical issues.
Euromoney...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
William Watson (Slaughter and May) examines the First-tier Tribunal’s decision and its wider commercial implications.
For much of last year Euromoney Institutional Investor plc v HMRC [2021] UKFTT 61 (TC) (Euromoney) was paired with Blackrock Holdco 5 LLC v HMRC [2020] UKFTT 443 (TC) (Blackrock) as a potentially ground-breaking case focusing on a statutory purpose test. Both have now resulted in victory for the taxpayer through the agency of Kevin Prosser QC and both show yet again the importance of factual evidence in any purpose case. Moreover they are both examples – of which there are not many – where the First-tier tribunal (FTT) has found for the taxpayer even though it concluded that there was a ‘bad’ purpose. But in both instances I fear we will have to await further developments before drawing any very firm conclusions on the central technical issues.
Euromoney...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
