The taxpayer cuts through a ‘procedural thicket’ to achieve victory in this retirement benefit scheme case, writes Adam Craggs
In the recent case of HMRC v Mitesh Dhanak [2014] UKUT 0068 (TCC) Mr Dhanak (the taxpayer) was the sole shareholder and director of Precious Homes Ltd (PHL). On 27 February 2004 PHL established a FURBS in Guernsey for the taxpayer’s sole benefit. In 2003/04 and 2004/05 (the relevant years) PHL made cash and real estate contributions to the FURBS claiming those payments as corporation tax deductions. The taxpayer’s income tax self-assessments for the relevant years showed the cash contributions as his income by virtue of ITEPA 2003 s 386 but the returns were prepared on the basis that no tax was payable on the real estate contributions as these were...
