Tax cases

What motive?

Cadbury Schweppes had two subsidiaries resident in the Republic of Ireland, which were subject to a 10% rate of tax. HMRC said that the controlled foreign companies legislation applied under TA 1988, ss 747 to 756. The company appealed, saying that this breached Articles 43EC, 49EC and 56EC of the EC Treaty (freedom of establishment).

Not necessary enough

The appellant was employed by the NHS as a part-time consultant psychiatrist in physiotherapy. She claimed professional training costs under ITEPA 2003, s 336 in her 2003-04 tax return. HMRC did not allow the claim, so she appealed.

Substitution payment

They have the power

The taxpayer company applied to the Special Commissioners for a direction to HMRC to issue a closure notice in respect of an enquiry into the company's tax return. The Commissioners decided that they should refer certain questions relating to controlled foreign companies to the European Court of Justice. HMRC appealed to the High Court, saying that the Commissioners did not have the power to make these referrals. The appealed was dismissed, so HMRC appealed.

Newnham College

The House of Lords has given HMRC leave to appeal the decision of the Court of Appeal in The Principal and Fellows of Newnham College Cambridge v CRC [2006] STC 1010, so HMRC have provided interim guidance for those businesses affected by the Court of Appeal decision.