Inland Revenue & Anor v Test Claimants In the Franked Investment Income Group Litigation [2014] EWCA Civ 1214 (02 September 2014)

Inland Revenue & Anor v Test Claimants In the Franked Investment Income Group Litigation [2014] EWCA Civ 1214 (02 September 2014)

The Court held that the issue HMRC sought to raise—whether the ACT charge on FIDs was protected by the standstill provision—had already been conclusively determined against HMRC in previous litigation. The FID regime as a whole was found to be a new restriction not protected by Article 64(1) TFEU. HMRC was estopped...

Source-derived case information.

Citation
[2014] EWCA Civ 1214
Parties
Appellant / Defendant: The Commissioners of Inland Revenue; Appellant / Defendant: Commissioners for Her Majesty's Revenue and Customs; Respondent / Claimant: The Test Claimants in the Franked Investment Income Group Litigation
Jurisdiction
England and Wales
Judgment Date
02 September 2014
Procedural Posture
Civil Appeal / Appeal From High Court (chancery Division) to Court of Appeal
Outcome
Appeal dismissed
Legal Topics
Advance Corporation Tax (act), Franked Investment Income (fii), Foreign Income Dividends (fid), Standstill Provision (article 64(1) Tfeu), Issue Estoppel, Abuse of Process, Restitution for Overpaid Tax, Freedom of Movement of Capital (article 63 Tfeu)
Tax Law European Union Law Civil Procedure Advance Corporation Tax (act) Franked Investment Income (fii) Foreign Income Dividends (fid) Standstill Provision (article 64(1) Tfeu) Issue Estoppel +3 more

Source-derived case record

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 19 Party arguments 2
Sign in to unlock

Parties

The Commissioners of Inland Revenue

Appellant / Defendant

Commissioners for Her Majesty's Revenue and Customs

Appellant / Defendant

The Test Claimants in the Franked Investment Income Group Litigation

Respondent / Claimant

Procedural Posture

Civil Appeal / Appeal From High Court (chancery Division) to Court of Appeal

Legal Issues

  1. 1 Whether HMRC could re-amend its defence to rely on the standstill provision in Article 64(1) TFEU to deny claims for the time value of ACT on third country FIDs.
  2. 2 Whether the issue had already been conclusively determined (issue estoppel) in previous litigation between the parties.

Ratio Decidendi

The Court held that the issue HMRC sought to raise—whether the ACT charge on FIDs was protected by the standstill provision—had already been conclusively determined against HMRC in previous litigation. The FID regime as a whole was found to be a new restriction not protected by Article 64(1) TFEU. HMRC was estopped from re-litigating this issue, and any attempt to do so would amount to an abuse of process.

Court Disposition

Appeal dismissed

Orders

  • Permission to appeal granted but appeal dismissed.
  • HMRC not permitted to re-amend its defence to rely on the standstill provision in Article 64(1) TFEU regarding ACT on third country FIDs.