Unsurprisingly Vodafone 2 have been refused leave to appeal to the Supreme Court. The case now returns to the First tier Tribunal for it to establish whether the Vodafone circumstances amount to “wholly artificial arrangements intended to escape the national tax normally payable.” Vodafone had argued that the ECJ’s conclusion in the Cadbury Schweppes case (finding the UK CFC provisions incompatible with Community law) meant that those provisions could not apply to any EU circumstances, even tax abusive structures, so that no review of Vodafone’s facts was needed.

With the final failure of that line, this litigation turns to factual determinations specific to Vodafone. An end to Vodafone 2 looks a long way off yet.