The Resource Bayfine UK v Revenue and Customs Commissioners : [2011] EWCA Civ 304

Bayfine UK v Revenue and Customs Commissioners : [2011] EWCA Civ 304

Label
Bayfine UK v Revenue and Customs Commissioners : [2011] EWCA Civ 304
Title
Bayfine UK v Revenue and Customs Commissioners : [2011] EWCA Civ 304
Contributor
Subject
Language
eng
Summary
Judgment by the Court of Appeal, Civil Division, dated 23 March 2011. The respondent taxpayer, Bayfine UK Ltd (BUK), and another company, Bayfine UK Products (BUKP) (both unlimited companies), entered into self-cancelling forward contracts with Bank of America. The contracts were designed so that, depending on certain events happening, one of the companies would make a large gain, and the other would make a large loss. In the event, BUK made the profit and BUKP made a loss of the same amount. BUK's profit was taxed in the United States in the hands of its US parent, Bayfine DE Inc (BDE), under the 'check the box regulations', which permitted the profit to be BDE's profit if no election was made for BUK to be taxed separately. BUK then claimed double taxation relief for that tax pursuant to art 23 of the UK/US tax treaty. In that situation the taxpayer in respect of the same income was a different person in the US (BDE), from the taxpayer in the UK (BUK). Both were residents of the jurisdictions in which they were liable to tax. The treaty did not deal with the situation that arose in the instant case, in which there were two persons chargeable to tax each in a different contracting state. The fact that the US taxed BDE and the UK taxed BUK on the same income gave rise to the risk of double taxation. BUK's appeal against a decision of the Special Commissioners was allowed in the High Court. The Revenue made a further appeal and the decision was overturned by the Court of Appeal, restoring the decision of the Special Commissioners
Citation source
In: International tax law reports. - London. - Vol. 13 (2011),
Language note
English
http://library.link/vocab/relatedWorkOrContributorName
Baker, P
http://library.link/vocab/subjectName
  • case law
  • tax treaty
  • double taxation relief
  • unilateral relief
  • foreign currency forward
Label
Bayfine UK v Revenue and Customs Commissioners : [2011] EWCA Civ 304
Instantiates
Publication
Label
Bayfine UK v Revenue and Customs Commissioners : [2011] EWCA Civ 304
Publication

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