In Ghelanis Superstore v HMRC (TC03251 – 22 January 2014) the question to be determined by the tribunal was whether Ghelanis was associated with a company called Eco Efficient Energy Ltd (EEE). If it was not marginal relief from corporation tax was available under ICTA 1988 s 13.
The issued share capital of Ghelanis and EEE was owned by the same seven shareholders (named A to G for convenience). The two companies were associated if they were controlled by the same person or persons (ICTA 1988 s 416).
Ghelanis contended that the greater part of the share capital of EEE was owned by B and C together; therefore the two companies were not associated as Ghelanis was not controlled by these same persons.
However the tribunal pointed out that the test for control includes any persons or combinations of persons who could ...
