Peninsular and Oriental Steam Navigation Co v Revenue and Customs: UTTC 19 Jun 2015

CORPORATION TAX – double taxation relief – dividend paid to related company – share subscription by overseas company in UK subsidiary – shares almost immediately cancelled with reduction of capital – subscription money credited to reserves – reserves then paid by way of dividend to overseas company – no UK tax borne by reserves – onward dividend paid to UK holding company – liability for Case V tax – whether ICTA s 801(4B) to be applied to ‘underlying tax’ – no – appeal dismissed

[2015] UKUT 312 (TCC), [2015] STC 2393, [2015] BTC 520, [2015] STI 2027
England and Wales

Corporation Tax

Updated: 19 November 2021; Ref: scu.553180