UBS suffers defeat in tax credit bid

UBS, the Swiss investment banking giant, today suffered a loss in the
of Appeal
as the court turned down its bid to claim a tax credit on

As Switzerland is not part of the EU, the bank was not able to turn to the
European Court of Justice to ensure that dividends paid into the UK would
receive the same tax benefits enjoyed by European companies.

UBS , however, claimed
that because it had a tax convention with the UK, it should be eligible for the
same reliefs as other EU members.

But the court turned down this bid in today’s judgment.

‘Since the convention excludes the entitlement to an associated tax credit in
the case of a Swiss enterprise which carries on business in the United Kingdom
through a permanent establishment and which has received dividends from United
Kingdom companies through that permanent establishment… UBS can place no
reliance on art 23 for the purpose of establishing its claim to a tax credit,’
the judgment said.

The case marks a major victory for UK tax
, who faced the prospect of providing tax credits on
dividends for several other companies, from countries outside the EU, that had
tax conventions with the UK.

The Court did grant UBS leave to appeal.

Further reading:

Read the full judgment

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