Corporation tax: ECJ ruling in thin capitalisation case

Resource type: Legal update: case report

Status: Law stated as at 13-Mar-2007

Jurisdictions: England, European Union, Scotland, United Kingdom, Wales

In Test claimants in the thin capitalisation group litigation v Commissioners of Inland Revenue, the European Court of Justice (ECJ) has held that thin capitalisation rules such as those that applied in the UK before 1 April 2004 are a restriction on the freedom of establishment but that such a restriction is permissible in the context of wholly artificial arrangements entered into for tax reasons alone, provided certain criteria are met.

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Resource ID: 3-239-1024
Law stated date: 13-Mar-2007
Products: PLC UK Corporate, PLC UK Finance, PLC UK Law Department, PLC UK Tax

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Topics

Cross-border: FinanceCross-border: Finance (http://property.practicallaw.com/7-200-1612)
Cross-border: TaxCross-border: Tax (http://property.practicallaw.com/2-103-1387)

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Legal update: case report

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HMRC victory in Test Claimants in the Thin Cap Group Litigation (Court of Appeal) HMRC victory in Test Claimants in the Thin Cap Group Litigation (Court of Appeal) (http://uk.practicallaw.com/topic4-504-8716)
Lords confirm recovery of compound interest Lords confirm recovery of compound interest (http://uk.practicallaw.com/topic2-373-6978)
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Case page

Test Claimants in the Thin Cap Group Litigation v IRC [2007] EUECJ C-524/04 Test Claimants in the Thin Cap Group Litigation v IRC [2007] EUECJ C-524/04 (http://uk.practicallaw.com/topicD-000-5548)

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