The five key tax cases of 2010, and why they matter - by Philip Ridgway
1. Grays Timber Products Ltd v HMRC
In Grays Timber ([2010] STC 782) the Supreme Court addressed the question of how the market value of shares should be determined in a takeover when a shareholders’ agreement provided for one of the shareholders to receive proportionately more consideration than the others. HMRC issued a determination stating that the shares of the controlling director had been sold for more than market value giving rise to an income tax charge on which the company was liable for PAYE. The Special Commissioner dismissed the company’s appeal holding that to calculate the market value of each share one simply takes the total paid and divides it by the number of ordinary shares issued. The Scottish Court of Session and the Supreme Court both dismissed the company’s appeal. Lord Walker...
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The five key tax cases of 2010, and why they matter - by Philip Ridgway
1. Grays Timber Products Ltd v HMRC
In Grays Timber ([2010] STC 782) the Supreme Court addressed the question of how the market value of shares should be determined in a takeover when a shareholders’ agreement provided for one of the shareholders to receive proportionately more consideration than the others. HMRC issued a determination stating that the shares of the controlling director had been sold for more than market value giving rise to an income tax charge on which the company was liable for PAYE. The Special Commissioner dismissed the company’s appeal holding that to calculate the market value of each share one simply takes the total paid and divides it by the number of ordinary shares issued. The Scottish Court of Session and the Supreme Court both dismissed the company’s appeal. Lord Walker...
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If you do not subscribe but are a registered user, please enter your details in the following boxes:
