Test Claimants in the ACT Group Litigation (Class 2 and Class 4) v HMRC (No 2)

The case of Test Claimants in the ACT Group Litigation (Class 2 and Class 4) v HMRC (No 2) (CA – 21 December) is the latest round in the long-running saga beginning with the ECJ decision in Metalgesellschaft Ltd & Others v CIR [2001] STC 452. In Pirelli Cable Holding NV & Others v CIR [2006] STC 548 two UK companies paid dividends to two Netherlands companies and an Italian company in the same group. The effect of the relevant double taxation agreements between the UK the Netherlands and Italy was that when the Dutch and Italian companies received dividends from one of the UK companies they received payments from the Revenue equal to 6.875% of the dividends. Following the CJEC decision in Metalgesellschaft Ltd & Others v CIR the UK companies claimed damages from the Revenue on the basis that the provisions of ICTA...