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Special Commissioners' Decisions

06 February 2002 / John Newth , Allison Plager
Issue: 3843 / Categories: Comment & Analysis
Summaries of two recent cases heard by the Special Commissioners: ABC Limited v M (Inspector of Taxes (SpC 300) and Natalie Perro (SpC 286)

Just a circular pipeline

Finance leasing is a well established procedure within the United Kingdom and companies exist whose activity is the provision of asset based finance. A Limited was just such a company. It was a subsidiary of AB plc which also had an investment banking arm namely PQR Limited.

X was a corporation incorporated in the European Union and Y a company incorporated in England which was a wholly owned subsidiary of X.

A complicated series of transactions was organised and set in motion by PQR Limited. Under the terms of two acquisition agreements between A Limited and X dated 31 December1993 A Limited agreed to acquire plant and machinery from X. The total purchase price specified in the agreements was in excess of £91 million. The decision is careful not to identify the nature of the plant and machinery thus making it...

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