.png)
.png)
A number of companies brought a group litigation over the compatibility of UK advance corporation tax with EU law. It concerned the tax treatment of dividends paid by a non-resident subsidiary to a resident parent company.
The case was long running and had already been referred to the European Court of Justice and back to the High Court. Both the taxpayers and HMRC appealed against the High Court’s decision.
The Court of Appeal ruled that the case would have to be referred back to the European Court of Justice to clarify whether or not Sch D case V infringed article 43 of the EC Treaty.
Furthermore the court said that the advance corporation tax provisions were compatible with EU law. With respect to restitution the judges ruled that the decision in Woolwich Equitable Building Society v CIR [1992] STC 657 provided the effective means for this.
...Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
