The Upper Tribunal in GE Financial Investments Ltd v HMRC allowed the taxpayer’s appeal, holding that the treaty’s purpose of preventing double taxation was a key factor in the interpretation of who benefitted from its protections and that HMRC was wrong to suggest that a direct connection to the taxing state was required in addition to worldwide taxation. It upheld the First-tier Tribunal’s decision that the taxpayer did not carry on a business in the US, finding that it was open to the tribunal to come to that conclusion on the basis that the taxpayer was effectively a conduit.
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The Upper Tribunal in GE Financial Investments Ltd v HMRC allowed the taxpayer’s appeal, holding that the treaty’s purpose of preventing double taxation was a key factor in the interpretation of who benefitted from its protections and that HMRC was wrong to suggest that a direct connection to the taxing state was required in addition to worldwide taxation. It upheld the First-tier Tribunal’s decision that the taxpayer did not carry on a business in the US, finding that it was open to the tribunal to come to that conclusion on the basis that the taxpayer was effectively a conduit.
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