Supreme Court rules on franked investment income

by Calum Fuller

More from this author

23 May 2012

  • Comments
UK Supreme Court by Jaume Meneses

THE SUPREME COURT today handed down a judgment in the FII Group Litigation v HM Revenue & Customs case, finding section 107 of the Finance Act 2007 to be in breach of European Union law, upholding the appellants' claims.

The British American Tobacco Group was the principal test claimant in the group litigation in which the claims of 25 company groups were enrolled.

The main issue of relevance to British American Tobacco concerned the lawfulness of retrospective legislation introduced by the Finance Act 2007; the claimants felt they were effectively subject to double taxation on their profits.

The ruling allows British American Tobacco and the other claimants to pursue claims of recovery of unlawfully imposed tax back as far as 1973.

Peter Cussons, tax partner at PwC, said: "The Supreme Court judgment is positive news for many companies with overseas investments which had seen profits taxed both in the state they originated and in the UK. The case still has a way to run in the courts but marks a step towards recovery of tax payments often dating back more than thirty years."

 

Visitor comments

blog comments powered by Disqus
display:none

Add your comment

We won't publish your address


By submitting a comment you agree to abide by our Terms & Conditions

Your comment will be moderated before publication

Submit
  • Send

Financial Planning and Performance AnalystCabinet Office-Greater London-Competitive

 
 
 
 
 
 
 
 

 

Newsletters

Get the latest financial news sent directly to your inbox

  • Best Practice
  • Business
  • Daily Newsletter
  • Essentials

Careers

Search for jobs
Click to search our database of all the latest accountancy roles

Create a profile
Click to set up your profile and let the best recruiters find you

Jobs by email
Sign up to receive regular updates with the latest roles suitable for you

Briefings

budget-management

Why budgeting fails: One management system is not enough

If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.

cchcover

iXBRL: Taking stock. Looking forward

In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.