Case Law

Imperial Chemical Industries plc v Colmer (Inspector of Taxes) 1999 STC 1089 concerned a claim for group relief by a consortium member, although it was relevant for the wider purpose of group relief.

Total income for the purposes of export sales relief was to be calculated after allowing for group relief. Cronin (Inspector of Taxes) v Youghal Carpets (Yarns) Limited 1985 III ITR 229

In Wood Preservation Ltd v Prior 45 TC 112 the owner of certain shares entered into a contract of sale for the shares conditional on the consent of a third party. It was held that the owner ceased to be the beneficial owner of the shares from the contract date although the purchaser could not be regarded as having become the beneficial owner at that time.

There was no justification for denying a repayment supplement on tax refunded to a German company on grounds of its non residence in the UK. R v Inland Revenue Commissioners, ex parte Commerzbank AG 1993 STC 605

Marks & Spencer plc v Halsey Case C-446/03 considered if the UK group relief provisions which prohibited an offset of foreign losses against UK group members contravened the Freedom of Establishment in the European Treaty. The case related to whether a UK parent company could offset losses that had arisen in its foreign subsidiaries against the group’s UK profits under the UK group relief rules. The ECJ held that the exclusion from the UK loss relief regime of losses incurred by an EU subsidiary did constitute a restriction on the freedom of establishment provisions but in some cases the restrictions were justified. The ECJ felt the occasion that foreign losses could be set against UK profits were when; the EU subsidiary had exhausted the possibilities available in the home territory for offsetting the losses in the current accounting period, and also the previous accounting periods and there is no possibility for the EU subsidiary’s losses to be taken into account in its country of residence for future periods, either by the subsidiary itself or a third party.

Entitlement to corportation tax group loss relief for Delaware-registered limitied liability company and if such entity was a "company" for Irish tax purposes. 17TACD2019