TaxCorporate TaxLords rules on Pirelli tax case

Lords rules on Pirelli tax case

House of Lords says Pirelli 'can't have their cake and eat it'

The House of Lords today ruled that companies which claimed a tax credit on a
dividend paid to a foreign parent cannot claim a refund of advanced corporation
tax.
The case centred on tyre maker Pirelli, which was in dispute with HM Revenue
& Customs over tax on a dividend paid to a Dutch parent.

HMRC claimed it could offset half the tax credit claimed by the Dutch parent
against any payment it had to make to Pirelli UK, in accordance with the
principle established in a European Court of Justice ruling in the Hoechst case.

The Lords have ruled in favour of HMRC, overturning an earlier court of
appeal judgement.

Chris Morgan, head of KPMG’s EU tax group, said; ‘This is a commonsense
approach. The House of Lords is saying the group [Pirelli] can’t have their cake
and eat it.’

He also said the ruling shows how far EU law goes in the way it can affect UK
law.

Related Articles

Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

Corporate Tax Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

2m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

2m Emma Rawson, ATT Technical Officer
EU divided over radical tax reforms targeting tech giants

Corporate Tax EU divided over radical tax reforms targeting tech giants

2m Alia Shoaib, Reporter
‘Improve rather than lose’ disincorporation relief, tax body urges

Administration ‘Improve rather than lose’ disincorporation relief, tax body urges

2m Austin Clark, Reporter
How to educate your clients about tax avoidance

Corporate Tax How to educate your clients about tax avoidance

2m Clear Books | Sponsored
CGT clampdown nets HMRC £124m – but could lead to increase in use of avoidance schemes

Corporate Tax CGT clampdown nets HMRC £124m – but could lead to increase in use of avoidance schemes

2m Austin Clark, Reporter
‘Google tax’ nets HMRC £281m

Corporate Tax ‘Google tax’ nets HMRC £281m

3m Emma Smith, Managing Editor
Should I incorporate my buy-to-let business?

Corporate Tax Should I incorporate my buy-to-let business?

4m Emma Rawson