The Weekly Law Reports
[2020] 1 WLR 777
Court of Appeal
*Coal Staff Superannuation Scheme Trustees Ltd v Revenue and Customs Commissioners
[2019] EWCA Civ 1610
2019 June 25, 26, 27; Oct 3
Newey, Asplin, Rose LJJ
Revenue— Income tax— Dividends— Taxpayer lending overseas shares in exchange for sum equivalent to dividends received by borrower during loan term— Borrower required to deduct amount equivalent to withholding tax on gross amount of such “manufactured overseas dividends”— Taxpayer unable to recover deducted tax if exempt from income tax— Whether tax regime for manufactured overseas dividends restricting free movement of capital— Whether restriction justified— Whether regime to be given interpretation conforming with European Union law—
Income and Corporation Taxes Act 1988 (c 1), Sch 23A, para 4(as amended by Finance Act 1996 (c 8), s 159 and Finance Act 2004, Sections 38 to 40 and 45, Schedule 6 (Consequential Amendment of Enactments) Order 2004 (SI 2004/2310), Sch 1, para 37)