Vodafone 2 v Revenue and Customs Comrs

Subject Matter

REVENUE — Corporation tax — Controlled foreign company — Profits of controlled foreign companies apportioned among parent companies and taxed in their hands — Exception where main purpose of controlled companies not reduction of UK tax — Whether apportionment confined to artificial arrangements — Whether compatible with right to freedom of establishment — Income and Corporation Taxes Act 1988, ss 747(3), 748(3) (as amended by Finance Act 1998, s 113, Sch 17, paras 1(3), 3(7)(8)) — EC Treaty, art 43EC

[2008] EWHC 1569 (Ch); [2009] Ch 123; [2009] 2 WLR 210; [2009] Bus LR 96; [2008] STC 2391, Ch D

REVENUE — Corporation tax — Controlled foreign company — Profits of controlled foreign companies apportioned among parent companies and taxed in their hands — Exception where main purpose of controlled companies not reduction of UK tax — Whether apportionment confined to artificial arrangements — Whether compatible with right to freedom of establishment — Whether relevant UK legislation capable of interpretation conforming with Community law — Whether legislation to be disapplied — Income and Corporation Taxes Act 1988 (as amended by Finance Act 1988), s 113, Sch 17, paras 1(3), 3(7)(8)), ss 747(3), 748(3) — EC Treaty, art 43EC

[2009] EWCA Civ 446; [2010] Ch 77; [2010] 2 WLR 288; [2010] Bus LR 96; [2009] STC 1480; [2009] WLR (D) 170, CA

Appellate History