12 October 2022

Sentinel Marine Falkland Islands Ltd -v- Commissioner of Taxation

The Court of Appeal of the Falkland Islands has released its decision in Sentinel Marine Falkland Islands Limited -v- The Commissioner of Taxation. This case concerns the scope of the oil ring-fence in the Falkland Islands.

The appellant provided a crewed emergency response and rescue vessel to the operators of an offshore drilling unit.  The Court of Appeal concluded that the appellant’s activities amounted to a ring-fence trade, upholding the decisions of the Tax Appeal Tribunal and the Supreme Court. The Court of Appeal also addressed the application of the double tax treaty between the UK and the Falkland Islands, concluding that the provisions in issue were not discriminatory.

The decision can be found here.

Laura Poots acted for the Falkland Islands Commissioner of Taxation. Laura Ruxandu (led by Julian Ghosh QC) acted for the appellant.