Tax cases

Complex claims

On 13 October 2000 Deutsche Morgan Grenfell Group a subsidiary of a German parent issued a claim form seeking compensation or restitution in respect of three relevant advance corporation tax (ACT) payments made on 14 October 1993 15 February 1995 and 14 January 1996.

The Revenue said that the claims in respect of the payments made more than six years before the taxpayer began its action were time-barred by Limitation Act 1980 s 2.

The High Court found for the taxpayer so the Revenue appealed.

At the relevant time UK tax law provided that where subsidiary companies paid dividends to their parents 'group income' elections could be made enabling the dividends to be paid without the paying subsidiary having to pay ACT to the Revenue. Until the European Court of Justice decision in Metallgesellschaft Ltd and others v CIR...