The Resource Swift v Revenue and Customs Commissioners : [2010] UKFTT 88 (TC)

Swift v Revenue and Customs Commissioners : [2010] UKFTT 88 (TC)

Label
Swift v Revenue and Customs Commissioners : [2010] UKFTT 88 (TC)
Title
Swift v Revenue and Customs Commissioners : [2010] UKFTT 88 (TC)
Creator
Contributor
Subject
Language
eng
Summary
Judgment by the First-Tier Tribunal (Tax), dated 22 February 2010. The taxpayer was ordinarily resident but non-domiciled in the UK for tax purposes. He was an employee of a UK incorporated company and a founding member of SPLLC, a Delaware, United States limited liability company ('LLC'). All profits were distributed to members and credited to the relevant member's capital accounts against which distributions were charged. Since SPLLC was classified as a partnership for US tax purposes and partners rather than partnerships were liable to tax, the taxpayer was subject to US federal and state tax on his share of profits from the LLC irrespective of whether the profits were actually distributed or retained. In the taxpayer's UK income tax returns, the gross figures for the taxpayer's share of SPLLC profits were reported as partnership income. The taxpayer claimed double taxation relief on the basis that he was liable to tax in the UK on his share of the profits of SPLLC which were the same profits that were taxed in the US. It was submitted that SPLLC was a transparent entity, the profits of which were taxable as they arose. The Revenue contended that the taxpayer was not entitled to tax relief because SPLLC was a corporate (opaque) entity that had paid the equivalent of dividend and so the taxpayer had not been taxed on the same income in the UK. The taxpayer appealed. It was held that SPLLC stood somewhere between a Scottish partnership and a UK company, being on the partnership side particularly in relation to its income. Accordingly, the taxpayer was taxed on the same income in both countries and was entitled to double taxation relief under the treaty
Citation source
In: International tax law reports. - London. - Vol. 12 (2010),
http://bibfra.me/vocab/relation/comm
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http://library.link/vocab/creatorName
Nikolakakis, A
Language note
English
http://library.link/vocab/relatedWorkOrContributorName
Baker, P
http://library.link/vocab/subjectName
  • case law
  • double taxation relief
  • partnership
  • tax treaty
  • Delaware corporation
  • entity classification
  • opaque
Label
Swift v Revenue and Customs Commissioners : [2010] UKFTT 88 (TC)
Instantiates
Publication
Label
Swift v Revenue and Customs Commissioners : [2010] UKFTT 88 (TC)
Publication

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