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Maersk Oil: 'just and reasonable' apportionment

First published in Tax Journal, February 8, 2018

By Jenny Doak and Evlogi Kabzamalov

For a concept that is so commonly found in our tax legislation, it is perhaps surprising that there has not been more guidance on what the parameters of a ‘just and reasonable’ apportionment are. The First-tier Tribunal’s recent decision on this important principle in Maersk Oil North Sea UK Ltd and Maersk Oil UK Ltd v HMRC [2018] UKFTT 20 (TC) (reported on page 4) will therefore be welcome news for many taxpayers.

The case revolves around the government’s surprise announcement on 23 March 2011 that it would, overnight, increase the rate of supplementary charge (from 20% to 32%) on the adjusted ring fence profits of oil and gas companies. Read the entire article here.

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