Julian Feiner (Dentons) examines the First-tier Tribunal’s recent decision that three Jersey companies incorporated as part of a tax planning arrangement were resident in the UK.
Company residency decisions were once rare and brief. The central management and control rule was established in 1905 and examples followed slowly in 1959 and 1996. However a new line of cases has formed in the past decade calling into question the nature and application of the central management and control (CMC) rule.
The latest is the 127 page First-tier Tribunal decision in Development Securities (No. 9) Ltd and Others v HMRC [2017] UKFTT 565 (reported in Tax Journal 28 July 2017). A UK parent incorporated three companies in Jersey and sold assets to them at an overvalue as part of a plan to increase capital losses. The tribunal focused on the lack of commercial benefit for the Jersey companies...
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Julian Feiner (Dentons) examines the First-tier Tribunal’s recent decision that three Jersey companies incorporated as part of a tax planning arrangement were resident in the UK.
Company residency decisions were once rare and brief. The central management and control rule was established in 1905 and examples followed slowly in 1959 and 1996. However a new line of cases has formed in the past decade calling into question the nature and application of the central management and control (CMC) rule.
The latest is the 127 page First-tier Tribunal decision in Development Securities (No. 9) Ltd and Others v HMRC [2017] UKFTT 565 (reported in Tax Journal 28 July 2017). A UK parent incorporated three companies in Jersey and sold assets to them at an overvalue as part of a plan to increase capital losses. The tribunal focused on the lack of commercial benefit for the Jersey companies...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
.jpg?sfvrsn=335a554c_0 "300 x 250 (MPU)")