The much awaited judgment of the Supreme Court in Anson v HMRC [2015] UKSC 44 has been published.
Robert Waterson, senior associate at law firm RPC, said the decision ‘represents a resounding victory for the taxpayer’. He added: ‘The court found that the two lower appellate courts had been wrong to focus on whether the taxpayer had a proprietary right to profits in the LLC rather than looking at whether it was the same income which was being taxed in the US and UK. The FTT was entitled to find that the taxpayer had an “interest” in the LLC and it was on this finding of fact that English law ought to be applied.
‘HMRC's long standing practice has been to treat Delaware LLCs as opaque for double tax convention relief purposes. Although the decision will not be wide ranging in its impact, those with income from Delaware LLCs which has been refused DTC relief should seek advice on whether they can amend their returns.’
See below for a review of the judgment; the case report; and some initial comment.
The much awaited judgment of the Supreme Court in Anson v HMRC [2015] UKSC 44 has been published.
Robert Waterson, senior associate at law firm RPC, said the decision ‘represents a resounding victory for the taxpayer’. He added: ‘The court found that the two lower appellate courts had been wrong to focus on whether the taxpayer had a proprietary right to profits in the LLC rather than looking at whether it was the same income which was being taxed in the US and UK. The FTT was entitled to find that the taxpayer had an “interest” in the LLC and it was on this finding of fact that English law ought to be applied.
‘HMRC's long standing practice has been to treat Delaware LLCs as opaque for double tax convention relief purposes. Although the decision will not be wide ranging in its impact, those with income from Delaware LLCs which has been refused DTC relief should seek advice on whether they can amend their returns.’
See below for a review of the judgment; the case report; and some initial comment.
