Arguments
The Dawsons argued:
- that the CGT rule mentioned above worked in their favour and they could not be taxed until such time (if ever) as they sold their shares in Greenjacket Investments Ltd.; and
- that the Ramsay Principle did not apply, since what they had done had "real" enduring consequences.
The tax authorities argued:
- that Greenjacket Investments Ltd. only existed as a vehicle to create a tax saving;
- that the effect of the transaction as a whole was that the Dawsons had sold the operating companies to Wood Bastow Holdings Ltd.;
- that because the intervening stages of the transaction had only been inserted to generate a tax saving, they were to be ignored under the Ramsay Principle, and instead the effect of the transaction should be taxed; and
- that the transaction being "real" (which is to say, not a sham) was not enough to save it from falling within the Ramsay Principle.
The Court of Appeal had given a judgement agreeing with the Dawsons on these points.
Read more about this topic: Furniss V Dawson
Famous quotes containing the word arguments:
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