Loans made between associated companies for the sole purpose of creating a charge to tax were ineffective as avoidance scheme.
Citations:
Times 19-Aug-1997
Statutes:
Income and Corporation Taxes Act 1988 338
Jurisdiction:
England and Wales
Cited by:
At ChD – McNiven (Inspector of Taxes) v Westmoreland Investments Ltd CA 26-Oct-1998
Cross loans were made between an investment company and pension schemes. The overall effect was to create payments which could be set off against Corporation Tax. They were not a pre-ordained series of transactions where the underlying loans were . .
At Chd – MacNiven (Inspector of Taxes) v Westmoreland Investments Ltd HL 15-Feb-2001
The fact that a payment of interest was made only to create a tax advantage did not prevent its being properly claimed. Interest was paid for the purposes of setting it against tax, when the debt was discharged. A company with substantial losses had . .
Lists of cited by and citing cases may be incomplete.
Income Tax, Taxes Management
Updated: 10 May 2022; Ref: scu.83579