• Delaware LLCs - Entity Status for UK Tax Purposes: Further Update - Court of Appeal Confirms Tax Opaque Status
  • February 18, 2013 | Author: Sarah Gabbai
  • Law Firm: Fried, Frank, Harris, Shriver & Jacobson (London) LLP - London Office
  • The Court of Appeal decision of Lady Justice Arden in Revenue & Customs Commissioners v George Anson [2013] EWCA Civ 63 was published today (13 February 2013). The taxpayer, George Anson, appealed against the decision of the Upper Tribunal (UT) in Anson v Revenue & Customs Commissioners (FTC/39/2010), which held that, in reversing the earlier decision of the First Tier Tribunal (FTT) in Swift v Revenue & Customs Commissioners [2010] UKFTT 88 (TC), Mr. Anson’s share of the profits in a Delaware LLC did not qualify for a UK tax credit under the US-UK double tax treaty because the relevant Delaware LLC was considered opaque, not transparent, for UK tax purposes. The principal reason for the UT’s decision was that, under the terms of the governing LLC agreement, the profits were held not to belong to the LLC members, but to the LLC itself.