Notes:
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INCOME TAX – tax avoidance scheme designed to obtain a tax deduction in respect of a manufactured overseas dividend treated as an annual payment within section 349 ICTA with no counteracting tax charge – paragraph 4(1) Schedule 23A ICTA and regulation 2B(3) Income Tax (Manufactured Overseas Dividend) Regulations 1992 SI 1993/2004 – whether scheme defeated by the Ramsay principle – held, yes – alternatively whether the annual payment deductible notwithstanding an express provision in regulation 2B(3) that no deduction of tax was required on making the payment – held, no – Earl Howe v CIR and succeeding cases applied – alternatively whether the charge to basic rate tax under section 3 ICTA restricts relief for any deduction for such an annual payment to relief at the higher rate(s) of income tax – held, no – appeal dismissed |