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United Kingdom grounds illegality

Tower MCashback LLP 1 v Revenue and Customs Commissioners

[2011] UKSC 19
JurisdictionUnited Kingdom
CourtUK Supreme Court
Year2011
StatusBinding authority

Summary

Expenditure on software licences in a tax avoidance scheme lacking genuine commercial substance did not qualify for capital allowances.

Key Principle

The Supreme Court held that expenditure on software licences was not qualifying expenditure for capital allowances because the scheme was a tax avoidance arrangement without genuine commercial substance.

Area of Law

tax

Related Cases

Commissioner of Taxation v Consolidated Media Holdings Ltd (2012) 250 CLR 503

Statutory interpretation in tax law requires ascertaining meaning from text, context and purpose; beneficial construction favouring taxpayer is not appropriate.

Federal Commissioner of Taxation v Consolidated Media Holdings Ltd (Statutory Construction) [2012] HCA 55

Tax legislation is construed by giving words their ordinary meaning in context; legislative purpose resolves ambiguity but cannot override clear statutory language.

Aid/Watch Inc v Commissioner of Taxation (2010) 241 CLR 539

An organisation engaged in political advocacy and law reform can qualify as charitable, as generating public debate on matters of public interest satisfies the public benefit requirement.

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