.png)
.png)
Prudential Assurance Company Ltd v CRC, Chancery Division
Following the High Court decision on 24 October 2013 ([2014] STC 1236), the parties returned to court with consequential matters for the judge to rule on. The taxpayer company was the test case in the controlled foreign company and dividend group litigation order.
Mr Justice Henderson agreed compound interest should be paid in respect of claims for unlawful corporation tax paid in accounting periods that remain open.
He further ruled that unlawful advance corporation tax (ACT) should be regarded as being set off against unlawful mainstream corporation tax, as argued by the taxpayer, rather than a pro rata approach, as advocated by HMRC.
