GDF Suez Teeside Ltd (Formerly Teeside Power Ltd) v Revenue & Customs (INCOME TAX/CORPORATION TAX : Profits)

Corporation tax �loan relationships- transfer of contingent debt asset � no profit recognised in accounts � s 84 Finance Act 1996 � �fairly represents� profits � whether accepted accounting method � impact of override in s 84 � held � taxpayer�s accounts GAAP compliant � no alternative set of GAAP compliant accounts � FRS 5 substance approach does not produce fair representation of profits� s 84 override applied � appeal dismissed.

Sitting in public at Royal Courts of Justice, the Strand London on 13 � 15 April 2015

Mr Peacock QC of 11 New Square Lincoln�s Inn and Mr Boulton QC of One Essex Court Temple, instructed by Slaughter and May for the Appellant

Mr Milne QC and Ms Wilson, instructed by the General Counsel and Solicitor to HM Revenue and Customs, for the Respondents

This appeal relates to taxable profits which HMRC say arise to the Appellant as a result of the transfer of loan relationships to a subsidiary company on 5 December 2006 and 2 March 2007. Specifically HMRC believe that the Appellant should bring an amount of �194,899,838 into charge to tax as a loan relationship credit for its accounting period ending 5 December 2006 and an amount of �5,154,631 for its accounting period ending 30 September 2007.