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TMI BlogJudicial approach with regard to taxation in cases of tax avoidance schemes.X X X X Extracts X X X X X X X X Extracts X X X X ..... , 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 tax payers may be of his ingenuity, he cannot be compelled ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 this. In a preplanned tax saving scheme no distinction is to be d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 the same shares to woodbastow for a sum in cash. Under such a t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tic 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 regard to the economic realities behind the legal facade. For example, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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