- Supreme Court rules out compound interest on corporation tax repayment (Prudential Assurance Company Ltd v Commissioners for Her Majesty’s Revenue and Customs)
- What are the practical implications of the judgment?
- What was the background?
- What did the Supreme Court decide?
- Whether EU law required a tax credit in respect of overseas portfolio dividends to be set by reference to the overseas tax actually paid or by reference to the FNR
- Whether the respondent was entitled to compound interest in respect of tax which was levied in breach of EU law, on the basis that the appellant was unjustly enriched by the opportunity to use the money in question
- The ACT issues
Tax analysis: Michael Anderson, a partner at Joseph Hage Aaronson LLP, examines the Supreme Court’s decision that, among other things, the appellant HMRC was not required to pay compound interest on the repayment of corporation tax which it had levied, in breach of EU law, on dividends that the respondent taxpayer had received from portfolio shareholdings in overseas companies.
Sign in or take a trial to read the full analysis.
To continue reading this news article, as well as thousands of others like it, sign in to LexisPSL or register for a free trial