The decisions in Burlington and Aozora GMAC are among the recent developments reviewed by Mike Lane and Zoe Andrews (Slaughter and May).
Burlington: purpose test in double tax treaties
In Burlington Loan Management DAC v HMRC [2022] UKFTT 290 (TC) HMRC had refused a refund of withholding tax on the basis of the purpose test in article 12(5) (Interest) in the UK/Ireland double tax treaty. The FTT decided in favour of the taxpayer that article 12(5) did not apply to prevent relief from withholding tax on interest. The case involved the secondary market in claims against Lehman Brothers International (Europe). One such claim was sold by SICL a Cayman company to a broker for £82.4m and from the broker to an Irish resident company Burlington Loan Management (BLM) for £83.55m.
Both SICL and BLM knew that SICL would suffer 20% withholding tax on interest payments made...
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The decisions in Burlington and Aozora GMAC are among the recent developments reviewed by Mike Lane and Zoe Andrews (Slaughter and May).
Burlington: purpose test in double tax treaties
In Burlington Loan Management DAC v HMRC [2022] UKFTT 290 (TC) HMRC had refused a refund of withholding tax on the basis of the purpose test in article 12(5) (Interest) in the UK/Ireland double tax treaty. The FTT decided in favour of the taxpayer that article 12(5) did not apply to prevent relief from withholding tax on interest. The case involved the secondary market in claims against Lehman Brothers International (Europe). One such claim was sold by SICL a Cayman company to a broker for £82.4m and from the broker to an Irish resident company Burlington Loan Management (BLM) for £83.55m.
Both SICL and BLM knew that SICL would suffer 20% withholding tax on interest payments made...
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:
