An FFT decision on unallowable purpose and a Supreme Court ruling on an EU law challenge are among the developments examined by Mike Lane and Zoe Andrews (Slaughter and May).
JTIAC: unallowable purpose
In JTI Acquisition Company (2011) Ltd v HMRC(TC/2019/04496) the First-tier Tribunal (FTT) found in favour of HMRC. The case has not yet been published on the Tribunal’s website but has been made available by Pump Court Tax Chambers.
A funding structure was put in place for the acquisition of a US company by a US headed group using a UK acquisition vehicle with debt pushed down to the UK from the US. It resulted in approximately £40m of non-trade loan relationship interest debits being claimed as group relief. HMRC issued closure notices disallowing the interest debits pursuant to CTA 2009 s 441. Around £9m of corporation tax is at stake.
Burden of proof
The...
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An FFT decision on unallowable purpose and a Supreme Court ruling on an EU law challenge are among the developments examined by Mike Lane and Zoe Andrews (Slaughter and May).
JTIAC: unallowable purpose
In JTI Acquisition Company (2011) Ltd v HMRC(TC/2019/04496) the First-tier Tribunal (FTT) found in favour of HMRC. The case has not yet been published on the Tribunal’s website but has been made available by Pump Court Tax Chambers.
A funding structure was put in place for the acquisition of a US company by a US headed group using a UK acquisition vehicle with debt pushed down to the UK from the US. It resulted in approximately £40m of non-trade loan relationship interest debits being claimed as group relief. HMRC issued closure notices disallowing the interest debits pursuant to CTA 2009 s 441. Around £9m of corporation tax is at stake.
Burden of proof
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:
