‘Thin cap’ rules under attack

'Thin cap' rules under attack

Multi-nationals launch fresh attack on direct tax policy

On Tuesday multi-nationals will launch their latest attack on the lawfulness
of UK direct tax policy, as the ‘thin cap’ group litigation order reaches the
ECJ.

The case, whose test claimants are the French building giant Lafarge, Volvo,
Pepsi and Caterpillar, have labelled the UK’s thin capitalisation rules as
disproportionately harsh.

The thin cap rules are anti-avoidance measures designed to prevent
international groups loading up UK subsidiaries with debt in order to reduce
corporation tax bills.

The barrister leading the action, Graham Aaronson QC, said the challenge did
not object to the anti-avoidance rules per se, and that the claimants had not
been trying to avoid tax.

He added: ‘The anti avoidance initiatives should have been tailored to deal
with cases of abuse.’

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource