Michael Anderson explains the latest developments and summarises some of the cases in which judgments are awaited
VAT focus
Thin Cap
In October this year the Thin Cap GLO (Test Claimants in the Thin Cap GLO v HMRC) reached the Court of Appeal. The litigation on appeal from the judgment of Henderson J in the High Court last year challenges the UK’s thin capitalisation provisions as they existed prior to the amendments to the transfer pricing legislation that took effect from April 2004 on the basis that those provisions were incompatible with Community law. The UK provisions were introduced in response to the potential tax avoidance opportunities that could arise when companies make intra-group cross-border loans.
The ECJ gave its ruling in the case in March 2007 and Mr Justice Henderson interpreted that ruling as clearly establishing that where such transactions were for genuinely commercial purposes ...
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Michael Anderson explains the latest developments and summarises some of the cases in which judgments are awaited
VAT focus
Thin Cap
In October this year the Thin Cap GLO (Test Claimants in the Thin Cap GLO v HMRC) reached the Court of Appeal. The litigation on appeal from the judgment of Henderson J in the High Court last year challenges the UK’s thin capitalisation provisions as they existed prior to the amendments to the transfer pricing legislation that took effect from April 2004 on the basis that those provisions were incompatible with Community law. The UK provisions were introduced in response to the potential tax avoidance opportunities that could arise when companies make intra-group cross-border loans.
The ECJ gave its ruling in the case in March 2007 and Mr Justice Henderson interpreted that ruling as clearly establishing that where such transactions were for genuinely commercial purposes ...
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:
