Tax Appeal. The Upper Tribunal (Tax and Chancery Chamber) having reviewed the decision of the First-tier Tribunal (Tax and Chancery Chamber) in respect of two schemes designed to deliver bonuses to their employees whilst also avoiding income tax and national insurance contributions, held that the first appellant, UBS AG, had achieved the objective by operation of its scheme, whilst the second appellant, DB Group Services (UK) Ltd, had failed to achieve the objective by operation of its scheme.
European Union Taxation. The Court of Justice of the European Union made a preliminary ruling on EC Treaty, art 43, concerning the application of the legislation relating to group relief allowed to some companies which were members of a consortium.
Contract Breach. The Technology and Construction Court dismissed the claimant's application, finding that, on the facts, the defendant had not breached the agreement between the parties, that the principle of estoppel had not been engaged and there had been no repudiation of the agreement.
*Revenue and Customs Commissioners v GMAC UK plc; British Telecommunications plc v Revenue and Customs Commissioners
Value added tax Bad debt relief. The Upper Tribunal (Tax and Chancery Chamber) held that property and insolvency conditions for domestic bad debt relief under s 22 of the Value Added Tax Act 1983 were incompatible with the Sixth Council Directive (EEC) 77-338 (on the harmonisation of the laws of the member states relating to turnover taxes - Common system of value added tax: uniform basis of assessment) and that some of the taxpayers' claims for bad debt relief had not been time barred due to an inadequate transitional period.
Stamp duty Relief from duty. The Upper Tribunal (Tax and Chancery Chamber) held that the claimants were not entitled to partial relief from stamp duty land tax because only a portion of the land they acquired was acquired as trustees for charities and the Crown.
Tax Corporation tax. The Upper Tribunal (Tax and Chancery Chamber) allowed the Revenue's appeal against the decision of the First-tier Tribunal (Tax Chamber) that the taxpayer had been entitled to roll-over relief on the basis that the gain arising on the sale of its business had been wholly in respect of goodwill.
Bank Bank loan. The Court of Appeal, civil Division, dismissed the defendant's appeal, holding that it had had capacity, as a state owned corporation established by statute, to enter into derivatives contracts with the claimant in respect of oil prices.
European Union Freedom of establishment. The Court of Justice of the European Union made a preliminary ruling on the interpretation of arts 31 and 40 of the Agreement on the European Economic Area in proceedings between the Finnish tax authorities and a Finnish company concerning an exchange of shares.
Capital gains tax Tax avoidance scheme. The Court of Appeal, Civil Division, dismissed the taxpayer's appeal against the decision by the Upper Tribunal (Tax and Chancery Chamber) that he was not entitled to allowable capital loss on his chargeable gain on the basis that, as established by the principle in Ramsay PVT Ltd v Inland Revenue Commissioners[, the composite transaction in question from which the gain was derived was not one to which the relevant provisions of the applied so as to give rise to the loss claimed by the taxpayer,
Value added tax Exemptions. The Upper Tribunal (Tax and Chancery Chamber) dismissed the taxpayer companies' appeal against a decision of the First-tier Tribunal (Tax Chamber) that the rent received in respect of public houses that they owned was attributable in part to the residential areas and therefore fell to be apportioned by virtue of Note 10 of Group 5 of to the Value Added Tax Act 1994, with the result that that portion of rent was excluded from the scope of the option to tax, thereby preserving the exemption from VAT for that part of the rent.