Market leading insight for tax experts
View online issue

JTIAC reaches the Upper Tribunal: onward, through the Slough of Despond, but for which purpose?

Gerald Montagu (Gide Loyrette Nouel) is disappointed by a recent Upper Tribunal decision on the unallowable purpose rule.

Those advising the taxpayer in the case of JTI Acquisitions Company (2011) Ltd v HMRC [2023] UKUT 194 (TCC) may be forgiven for feeling that like John Bunyan’s hero Christian in The Pilgrim’s Progress they are sinking in the mire weighed down by ‘fears and doubts and discouraging apprehensions’– and therefore for dreaming of succour in the shape of the tax law equivalent of the surface mining equipment in which the taxpayer group specialises.

The brief facts are that JTIAC was incorporated as a bid vehicle to acquire a genuinely valuable non-UK resident company as part of an arrangement involving the use of a Cayman company to side step the anti-arbitrage rules (which preceded the hybrid and other mismatch legislation) intended to enable...

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:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this article in full.
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
EDITOR'S PICKstar
Top