LONDON: Walt Disney Co. movies lost the latest round of a UK court battle over whether they should get tax relief on the deal.
London appeal judges ruled in favor of the British tax collection agency in the case of Eclipse Film Partners No 35 LLP, saying the partnership didn’t trade as a genuine business.
“Eclipse claimed to trade in film rights but was in reality a tax-avoidance scheme,” Her Majesty’s Revenue & Customs said in a statement. The case will ensure that about 635 million pounds ($973 million) in tax can be collected from Eclipse’s investors, HMRC said.
Senior bankers, traders and sporting celebrities were among the 289 investors in Eclipse 35 when it was created in 2006 by Future Capital Partners Ltd. The British government has targeted dozens of partnerships that it says allowed investors to improperly benefit from tax reliefs intended to boost the film industry.
Helen Buchanan, a lawyer for the Eclipse investors, didn’t immediately respond to an e-mail seeking comment. “The tax affairs of partnerships administered by FCP are confidential and we have no authority to discuss them,” Future Capital Partners said in an e-mailed statement.
