Davis & Ors v Revenue & Customs (INCOME TAX/CORPORATION TAX : Anti-avoidance) [2018] UKFTT 559 (TC) (26 September 2018)

Davis & Ors v Revenue & Customs (INCOME TAX/CORPORATION TAX : Anti-avoidance) [2018] UKFTT 559 (TC) (26 September 2018)

The arrangements were designed, at least in part, to avoid UK tax by using a Mauritian company to benefit from the UK-Mauritius Double Taxation Treaty. The transfer of assets legislation applies, and the income of the Mauritian company is deemed to be that of the Appellants and taxable in the UK. The Treaty does not...

Source-derived case information.

Citation
[2018] UKFTT 559 (TC)
Parties
Appellant: Appellants; Respondent: HMRC
Jurisdiction
United Kingdom
Judgment Date
26 September 2018
Procedural Posture
Tax Appeal / First Tier Tribunal Decision
Outcome
appeal dismissed
Legal Topics
Transfer of Assets, Double Taxation Agreements, Tax Avoidance, Attribution of Income, Treaty Relief
Tax Law International Tax Transfer of Assets Double Taxation Agreements Tax Avoidance Attribution of Income Treaty Relief

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 8 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Appellants

Appellant

HMRC

Respondent

Procedural Posture

Tax Appeal / First Tier Tribunal Decision

Legal Issues

  1. 1 Whether the income of a Mauritian company (ABP) can be attributed to UK-resident individuals under UK transfer of assets legislation
  2. 2 Whether the UK-Mauritius Double Taxation Treaty prevents such attribution and UK taxation
  3. 3 Whether the arrangements constituted tax avoidance or bona fide commercial transactions

Ratio Decidendi

The arrangements were designed, at least in part, to avoid UK tax by using a Mauritian company to benefit from the UK-Mauritius Double Taxation Treaty. The transfer of assets legislation applies, and the income of the Mauritian company is deemed to be that of the Appellants and taxable in the UK. The Treaty does not protect the Appellants from UK tax on this deemed income, as they are not resident in Mauritius and the Treaty relief does not apply to them.

Court Disposition

appeal dismissed