EWHC 609 (2010) Bayfine UK v HMRC

Double Taxation Relief, tax avoidance - Taxpayer won

Case Summary:

This was a tax avoidance case involving many millions and it is likely to go further. Complex transactions were set up which took advantage of the US check the box regulations.  Despite the transactions being entirely bereft of any commercial purpose other than to create losses for utilization as Group Relief the High Court found that the Double Taxation Relief was due. When the facts were applied to the law the relief was due.