Kyle Rainsford (Norton Rose Fulbright) examines the first UK case about the interpretation of a purpose rule in a double tax treaty which extends the recent approach of Blackrock HoldCo 5 to the international fiscal arena.
Despite the proliferation of ‘purpose tests’ – which deny tax benefits where transactions were effected for proscribed objectives – the approach of HMRC and the judiciary to their interpretation is still not settled. Burlington Loan Management DAC v HMRC [2022] UKFTT 290 (TC) is the first UK case about the interpretation of a purpose rule in a double tax treaty and extends the recent approach of the judiciary in cases like HMRC v Blackrock HoldCo 5 LLC [2022] UKUT 199 (TCC) to the international fiscal arena.
Background
SAAD Investment Company Ltd (SICL) a Cayman company was owed £142m by Lehman Brothers International (Europe) (LBIE) which was in administration. That...
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Kyle Rainsford (Norton Rose Fulbright) examines the first UK case about the interpretation of a purpose rule in a double tax treaty which extends the recent approach of Blackrock HoldCo 5 to the international fiscal arena.
Despite the proliferation of ‘purpose tests’ – which deny tax benefits where transactions were effected for proscribed objectives – the approach of HMRC and the judiciary to their interpretation is still not settled. Burlington Loan Management DAC v HMRC [2022] UKFTT 290 (TC) is the first UK case about the interpretation of a purpose rule in a double tax treaty and extends the recent approach of the judiciary in cases like HMRC v Blackrock HoldCo 5 LLC [2022] UKUT 199 (TCC) to the international fiscal arena.
Background
SAAD Investment Company Ltd (SICL) a Cayman company was owed £142m by Lehman Brothers International (Europe) (LBIE) which was in administration. That...
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:
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