The court considered the taxation of a sale of shares in one company called IDM to a company (FNW) and a further sale by that company to a yat another company (KDI). Held(Majority) It was right to look at each of the sales separately. The court rejected an argument by the Crown that they could be considered as an integrated transaction.
Eveleigh LJ, dissenting, upheld the argument, saying that the fact that each sale was genuine did not prevent him from regarding each as part of a whole, or oblige him to consider each step in isolation. Nor was he so prevented by the Westminster case. Looking at the scheme as a whole, and finding that the taxpayer and his sons-in-law had complete control of the IDM shares until they reached KDI, he was entitled to find that there was a disposal to KDI.
Judges:
Eveleigh LJ
Citations:
[1978] Ch. 295
Cited by:
Appeal from – Floor v Davis (Inspector of Taxes) HL 1979
The House considered whether the meaning of the phrase ‘a person having control’ extended to control by more than one person. This depended on whether the word ‘person’ in the singular was to be construed as including the plural.
Held: The . .
Lists of cited by and citing cases may be incomplete.
Corporation Tax
Updated: 04 May 2022; Ref: scu.449980