Vodafone 2 v Revenue and Customs: SCIT 26 Jul 2007

SCIT CORPORATION TAX – Controlled foreign companies – whether domestic legislation (ss 747 to 756 and Schs. 24 to 26) incompatible with freedom of establishment as provided for by arts. 43 EC and 48 EC of the EC Treaty – a reference to ECJ under art. 234 EC had been made by the Special Commissioners – subsequently ECJ delivered judgment in case of Cadbury Schweppes (Case C-196/04) on same general point – registrar of ECJ invited the Special Commissioners to indicate whether they wished to maintain the reference in instant case – submissions of parties invited at a hearing – whether ECJ’s judgment in Cadbury Schweppes indicated that the Special Commissioners should consider the CFC legislation as a whole, or specifically only the motive test, in order to ascertain whether judgment in Cadbury Schweppes could be ‘read down’ into the CFC legislation as a matter of conforming interpretation – held that the motive test should be considered – whether as a matter of conforming interpretation judgment in Cadbury Schweppes could, and should, be so ‘read down’ – held by a casting vote that it could and should be – whether the reference should be maintained – held by a casting vote that it should not be – decision accordingly

Citations:

[2007] UKSPC SPC00622, 10 ITL Rep 110, [2008] STC (SCD) 55

Links:

Bailii

Corporation Tax

Updated: 11 July 2022; Ref: scu.259276