Source: All England Reporter
Publisher Citation: [2012] All ER (D) 164 (Oct)
Neutral Citation: [2012] EWCA Civ 1290
Court: Court of Appeal, Civil Division

Lord Justice Pill, Lord Justice Rimer and Lady Justice Black

Representation John Gardiner QC and John Brinsmead-Stockham (instructed by Slaughter and May) for the taxpayer.
  Ian Glick QC and David Ewart QC (instructed by General Counsel and Solicitor to HM Revenue and Customs) for the Revenue.
Judgment Dates: 17 October 2012


Income tax - Double taxation relief - Corporation tax - Agreement with other countries - Non-discrimination - Group relief - UK company making group relief claim in respect of losses suffered by associated UK company - Both companies being subsidiaries of US resident company - Group relief claim rejected on basis parent company non-UK resident - Upper Tribunal (Tax and Chancery Chamber) finding rejection of relief amounting to discrimination which was prevented by provisions of UK-US Double Taxation Convention - Revenue appealing - Revenue submitting finding of discrimination only justified if parent being liable to UK corporation tax - Whether tribunal erring - Double Taxation Relief (Taxes on Income) (The United States of America) Order 1980, , , .

The Case

Income tax Double taxation relief. The Court of Appeal, Civil Division, held that there had been discrimination against a UK-based subsidiary company, which had sought double taxation relief, on the ground that its parent company had been a US-based company, and that that discrimination had not been because the parent company had not been liable to pay UK corporation tax.

Practice Areas

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