Aberdeen Asset Management PLC v HMRC [2013] CSIH 84 is a recent Court of Session decision concerning whether the receipt of shares under a tax avoidance scheme could be considered a payment of money for income tax and PAYE purposes.
What did the scheme involve in that case and what did the court decide?
The tax avoidance scheme was implemented by Aberdeen Asset Management PLC (AAM). The scheme involved the payment of bonuses to employees through the use of an Isle of Man company (the ‘money box company’). An employee benefit trust (EBT) (funded by AAM) subscribed for two shares in the money box company one at a substantial premium. The money box company granted a family benefit trust (FBT) an option to subscribe for 10 000 shares which would never be exercised....
