27 February 2017
UT Decision: GDF Suez Teesside Limited (Formerly Teesside Power Limited) v HMRC
CORPORATION TAX — avoidance scheme — transfer of contingent,unrecognised, claim against third party to subsidiary in exchange for shares — subsidiary recognising value of asset despite contingency but parent not recognising shares — whether accounting GAAP-compliant — yes — loan relationship rules — whether FA 1996 s 84(1) engaged — yes — recognised value of asset to be brought into account as credit in parent’s corporation tax computation —appeal dismissed.
PROCEDURE — opening of enquiry — whether error in identification of accounting period invalidates enquiry — no, if intention clear.
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