TaxTMI 
TaxTMI 
Judicial approach with regard to taxation in cases of tax avoidance schemes.
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....R.259 (1936) A.C.I. at p.19, sub nom Duke of Westminster, V.IRC 19 Tax cases 490 at p.520, Lord Tomin had held: "Every man is entitled if he can to order his affairs so as that the tax attaching under the appropriate Acts is less then it otherwise would be. If he succeeds in ordering them so as to secure this result, then however unappreciative the Commissioners of Inland Revenue or his fellow ....
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....disregarded and treated as fiscal nullity if it had enduring legal consequences. 3. The House of Lords in Furniss (Inspector of Taxes) Vs. Dawson and Related Appeals (1984 I ALL ER 530 ) held that this distinction was of no consequence for purposes of taxation. Lord Brightman in his main judgement in this case observed as under : "My Lords in my opinion the rationale of the new approach is t....
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.... in the third instant case tax will on the Ramsay principle fall to be assessed on the basis that there was a triparti contract between the Dawsons, Greenjacket and Wood Bastow under which the Dawsons contracted to transfer their shares in the operating companies to Greenjacket in return for an allotment of shares in Greenjacket and under which the Greenjacket simultaneously contracted to transfer....
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..... C.I.T.(1969) 73 ITR 702 at page 710. It is true that from juristic point of view the company is a legal personality entirely distinct from its members and the company is capable of enjoying rights and being subjected to duties which are the same as those enjoyed or borne by its members. But in certain exceptional cases the court is entitled to lift the veil of corporate entity and to pay rega....