UBS wins High Court battle with Revenue

Swiss investment banking group UBS yesterday won a High Court victory over
tax credits that could net the company £58.3m.

UBS was granted by Mr Justice Etherington permission to appeal last year’s
decision by the Special Commissioners over the bank’s claims for tax relief
going back to the early 1990s.

The bank claims that HM Revenue & Customs unfairly discriminated against
it in relation to the tax treatment of payouts compared with a UK resident
entitiy, when dealing with dividends received from the UK branch of Swiss
Banking Corporation, now part of UBS.

Last year the commissioners said UBS should be able to claim payment of the
tax credit on dividends but legislation had not been incorporated into UK law to
allow this, according to the Financial Times.

HMRC could appeal against the latest ruling.

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