MF Fowler v HMRC

In M.F. Fowler v HMRC [2016] UKFTT 234 (12 April 2016) the FTT found that the activities of a North Sea diver fell within the scope of the UK/South Africa double tax treaty (the Treaty) art 7 (business profits) and were therefore exempt from UK tax.

Mr Fowler was resident in South Africa and worked as a qualified diver undertaking diving work in the UK continental shelf sector of the North Sea. HMRC decided that his income from his North Sea diving activities fell within art 14 (income from employment) of the Treaty and were therefore chargeable to UK income tax. Mr Fowler contended that his diving income constituted business profits falling within art 7 of the Treaty and were accordingly exempt from UK income tax since he had no permanent establishment in the UK (within the meaning...