Anti-abuse provision in UK/Ireland double tax treaty did not apply.
In HMRC v Burlington Loan Management DAC [2024] UKUT 152 (TCC) (31 May 2024) the Upper Tribunal (UT) dismissed HMRC's appeal finding that the First-tier Tribunal (FTT) was entitled to come to the decision that the anti-abuse provision (employing a principal purpose test) in the UK/Ireland double tax treaty (DTT) did not apply.
Although Burlington an Irish tax resident company had (through an intermediary) purchased the debt claim from the liquidators of SICL (a Cayman Islands company which did not benefit from any exemption from UK withholding tax) the UT dismissed HMRC’s appeal deciding that the FTT had not made an error of law in deciding that neither party had a main purpose of taking advantage of the withholding tax exemption provided by the UK/Ireland DTT. Consequently Burlington benefited from the exemption in the...
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:
Anti-abuse provision in UK/Ireland double tax treaty did not apply.
In HMRC v Burlington Loan Management DAC [2024] UKUT 152 (TCC) (31 May 2024) the Upper Tribunal (UT) dismissed HMRC's appeal finding that the First-tier Tribunal (FTT) was entitled to come to the decision that the anti-abuse provision (employing a principal purpose test) in the UK/Ireland double tax treaty (DTT) did not apply.
Although Burlington an Irish tax resident company had (through an intermediary) purchased the debt claim from the liquidators of SICL (a Cayman Islands company which did not benefit from any exemption from UK withholding tax) the UT dismissed HMRC’s appeal deciding that the FTT had not made an error of law in deciding that neither party had a main purpose of taking advantage of the withholding tax exemption provided by the UK/Ireland DTT. Consequently Burlington benefited from the exemption in the...
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:
