GDF Suez Teesside Ltd v The Commissioners for HM Revenue and Customs: [2017] UKUT 0068 (TCC)

Upper Tribunal Tax and Chancery decision of Mr Justice Newey and Judge Bishopp on 17 February 2017.

• From: HM Courts & Tribunals Service and Upper Tribunal (Tax and Chancery Chamber)
• Published: 21 February 2017

• Category: Tax
• Release date: 17 February 2017

Read the full decision in GDF Suez Teesside Ltd v The Commissioners for HM Revenue and Customs: [2017] UKUT 0068 (TCC).

CORPORATION TAX — avoidance scheme — transfer of contingent, unrecognised, claim against third party to subsidiary in exchange for shares — subsidiary recognising value of asset despite contingency but parent not recognising shares — whether accounting GAAP-compliant — yes — loan relationship rules — whether FA 1996 s 84(1) engaged — yes — recognised value of asset to be brought into account as credit in parent’s corporation tax computation —appeal dismissed PROCEDURE — opening of enquiry — whether error in identification of accounting period invalidates enquiry — no, if intention clear.

Published 21 February 2017