Does a parent company centrally manage and control its special purpose subsidiary?

Peter Madden and Nikol Davies review a recent UK decision in the Upper Tier Tribunal that considers the locus of central management and control of special purpose subsidiary companies.

In the case of Development Securities plc and Ors –v- HMRC (2019) UKUT 0169, the Upper Tier Tribunal (“UTT”) considered whether certain Jersey companies that had been incorporated by a UK parent company for the purposes of a property scheme were centrally managed and controlled in the UK.  While this is a decision of UK courts, the discussion on central management and control is useful and instructive and can be used as a means of factually distinguishing the Australian case law authorit...

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Authors: Peter Madden, Nikol Davies

Published Date: 17 June 2019