Refinitiv Ltd & Ors, R (On the Application Of) v Commissioners for His Majesty's Revenue and Customs [2024] EWCA Civ 1412 (15 November 2024)

Refinitiv Ltd & Ors, R (On the Application Of) v Commissioners for His Majesty's Revenue and Customs [2024] EWCA Civ 1412 (15 November 2024)

The APA between TR UK and HMRC applied only to the accounting periods expressly specified (2008-2014) and did not relate to the 2018 period. Therefore, HMRC's issuance of DPT charging notices for 2018, based on a profit-split methodology, was not inconsistent with the APA or unlawful in public law. The statutory framework does not extend the effect of an APA to subsequent periods absent express renewal.

Citation
[2024] EWCA Civ 1412
Parties
Claimant/appellant: Refinitiv Limited; Claimant/appellant: Refinitiv UK Eastern Europe Limited; Claimant/appellant: Lipper Limited; Claimant/appellant: Thomson Reuters Corporation; Defendant/respondent: The Commissioners for His Majesty's Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
15 November 2024
Procedural Posture
Judicial Review (tax) / Appeal From Upper Tribunal to Court of Appeal
Outcome
Appeal dismissed
Legal Topics
Advance Pricing Agreements, Transfer Pricing, Diverted Profits Tax, Statutory Interpretation, Judicial Review, Corporation Tax
Tax Law Public Law Administrative Law Advance Pricing Agreements Transfer Pricing Diverted Profits Tax Statutory Interpretation Judicial Review +1 more

Case Brief

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Parties

Refinitiv Limited

Claimant/appellant

Refinitiv UK Eastern Europe Limited

Claimant/appellant

Lipper Limited

Claimant/appellant

Thomson Reuters Corporation

Claimant/appellant

The Commissioners for His Majesty's Revenue and Customs

Defendant/respondent

Procedural Posture

Judicial Review (tax) / Appeal From Upper Tribunal to Court of Appeal

Legal Issues

  1. 1 Whether HMRC's DPT charging notices for 2018 were unlawful due to inconsistency with the terms of an Advance Pricing Agreement (APA) covering 2008-2014.
  2. 2 Whether the APA's agreed transfer pricing methodology (cost-plus) constrained HMRC's approach to DPT or transfer pricing for later periods.
  3. 3 Proper construction of section 220 of TIOPA regarding the temporal scope of APAs.

Ratio Decidendi

The APA between TR UK and HMRC applied only to the accounting periods expressly specified (2008-2014) and did not relate to the 2018 period. Therefore, HMRC's issuance of DPT charging notices for 2018, based on a profit-split methodology, was not inconsistent with the APA or unlawful in public law. The statutory framework does not extend the effect of an APA to subsequent periods absent express renewal.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed.
  • The DPT charging notices for 2018 are upheld.