The recent decision in Haworth v HMRC [2022] UKFTT 34 (TC) provides useful judicial commentary on the correct interpretation of the ‘place of effective management’ (POEM) tie-breaker test for corporate trustees in the context of a ‘round the world’ scheme.
The trustees of a family trust held shares in a UK company that was soon to be listed during the peak of the ‘dot-com bubble’ in 2000. In an attempt to escape UK CGT on the disposal of these shares a scheme was designed (essentially by UK advisers) to exploit the tie-breaker test under the UK/Mauritius double tax treaty. In very simple terms this involved the...
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The recent decision in Haworth v HMRC [2022] UKFTT 34 (TC) provides useful judicial commentary on the correct interpretation of the ‘place of effective management’ (POEM) tie-breaker test for corporate trustees in the context of a ‘round the world’ scheme.
The trustees of a family trust held shares in a UK company that was soon to be listed during the peak of the ‘dot-com bubble’ in 2000. In an attempt to escape UK CGT on the disposal of these shares a scheme was designed (essentially by UK advisers) to exploit the tie-breaker test under the UK/Mauritius double tax treaty. In very simple terms this involved 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: