Ardmore: Some Reflections on the “Practical Approach" to Identifying the Source of an Interest Payment
15 April 2020
UK | Tax | British Tax Review, Issue 1, 2020
Determining the source of an interest payment for tax purposes remains a perennially difficult problem in the context of financing arrangements in many jurisdictions.
In Issue 1, 2020, the British Tax Review has published an article by Gerald Montagu, counsel in Gide's London office, examining recent HM Revenue and Customs guidance issued on this important topic in the wake of the first case to reach the English Court of Appeal in some fifty years.
This article sets out the United Kingdom approach to identifying the source of an interest payment in the context of the experience in Australia and South Africa since the early twentieth century and suggests some constructive ways forward while uncovering an intriguing and previously untold tale of the influence of UK tax law on the tax law of certain other jurisdictions and their influence on UK tax law.