The Resource Revenue and Customs Commissioners v Anson : [2015] UKSC 44

Revenue and Customs Commissioners v Anson : [2015] UKSC 44

Label
Revenue and Customs Commissioners v Anson : [2015] UKSC 44
Title
Revenue and Customs Commissioners v Anson : [2015] UKSC 44
Contributor
Subject
Language
eng
Summary
Judgment by the UK Supreme Court, judgment date 1 July 2015. The taxpayer was, at material times, resident but non-domiciled in the UK for UK tax purposes. He was liable to UK income tax on his UK-sourced income and on foreign income remitted to the UK. He was non-resident in the USA for US federal and state taxes on his US-sourced income. He was a member of a Delaware limited liability company (LLC), that carried on business in Massachusetts, which was classified as a partnership for US tax purposes. As a member of an entity classified as a partnership, the taxpayer was liable to US federal and state taxes on his share of the profits. The taxpayer remitted the balance to the UK, and was therefore liable to UK income tax on the amounts remitted, subject to any double taxation relief that might be available. He claimed relief under art. 23(2)(a) of the UK-US double taxation convention. The Revenue and Customs Commissioners (HMRC) decided that the taxpayer was not entitled to double taxation relief, on the basis that the income which had been taxed in the US was not his income but that of the LLC. The dispute concerned, in particular, whether the UK tax to which the taxpayer was liable was 'computed by reference to the same profits or income' by reference to which the US federal tax was computed, within the meaning of art. 23(2)(a), and the analogous question, under s 740 of the Income and Corporation Taxes Act 1988, of whether the UK tax was computed to the same income as the applicable Massachusetts state tax. The First-tier Tribunal (FTT) held that the taxpayer was taxed on the same income in both countries, and was therefore entitled to double taxation relief under the Convention in respect of the federal income tax, and to unilateral relief under s 790(4) in respect of the state taxes. HMRC appealed, and the Upper Tribunal allowed that appeal. The Court of Appeal dismissed the taxpayer's appeal against that decision. The taxpayer made a further appeal to the Supreme Court. The taxpayer contended, first, that even assuming the US tax was charged on the profits of the LLC, and that the taxpayer was liable to UK tax only on distributions made out of those profits, the US and UK tax were nevertheless charged on 'the same profits or income' within the meaning of the Convention. Secondly, that as a matter of UK tax law, and on the findings of the FTT, the taxpayer was liable to tax in the UK on his share of the profits of the trade carried on by the LLC, which was the same income as had been taxed in the US. The case is an example of a hybrid entity, qualified differently by the US and the UK
Citation source
In: International tax law reports. - London. - Vol. 17 (2015),
Language note
English
http://library.link/vocab/relatedWorkOrContributorName
Baker, P
http://library.link/vocab/subjectName
  • case law
  • tax treaty
  • non-domiciliary
  • residence
  • Delaware corporation
  • entity classification
  • hybrid entity
  • double taxation relief
Label
Revenue and Customs Commissioners v Anson : [2015] UKSC 44
Instantiates
Publication
Label
Revenue and Customs Commissioners v Anson : [2015] UKSC 44
Publication

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