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Correspondence from readers on topical subjects.

Going Dutch

I refer to the article by Richard Curtis 'Shelling out' (Taxation 28 July 2005 page 430).
Regarding the position of UK former shareholders in Royal Dutch Petroleum I am reminded of the case of Furniss v Dawson (55 TC 324 House of Lords judgment from page 388). I believe the judgment in the House of Lords (page 401) held that in a pre-ordained series of transactions (or one composite transaction) an inserted step was to be 'disregarded for fiscal purposes' if it was of no commercial (business) purpose apart from the avoidance of a liability to tax regardless of its business effect. Could not the former shareholders of Royal Dutch Petroleum argue that the principle should apply equally to an inserted step that creates a liability to tax as...