Analysis
Tax Analysis: ‘Unallowable purpose’ taboos broken (JTI Acquisition Company (2011) Ltd v HMRC)
In this article Gide London counsel, Gerald Montagu considers JTI Acquisition, a decision which is likely to prove controversial and cause considerable disquiet since the First-tier Tax Tribunal (FTT) has agreed with HMRC’s challenge to long-accepted taboos (such as that borrowing to finance a corporate acquisition is not an unallowable purpose), notwithstanding counsel for the appellant’s remonstrance that the approach advocated by HMRC was ‘unprecedented’ and such as to render this case the first of its kind.
This article was originally published in Lexis®PSL Tax.
Click on the PDF below to read the article in full.