Insolvency consequences of a failed avoidance scheme:C Purkiss v T Kennedy and others [2025] EWCA Civ 268 (14 March) is not a tax case but will be of interest to many tax practitioners because it concerns the insolvency consequences of a failed avoidance scheme. The company here entered into several variants of a disguised remuneration scheme under which individuals were rewarded by means of loans. The scheme failed and the company was assessed to PAYE in a sum exceeding £2m. This caused the company to go into liquidation without any of that amount being paid.
The liquidator sought recovery of the relevant PAYE and NIC amount from each of the individuals who had benefitted from the scheme. This was on the basis that the company had a prohibited purpose in entering into these schemes i.e. it intended to avoid a tax liability arising. Alternatively he argued that the purpose...
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Insolvency consequences of a failed avoidance scheme:C Purkiss v T Kennedy and others [2025] EWCA Civ 268 (14 March) is not a tax case but will be of interest to many tax practitioners because it concerns the insolvency consequences of a failed avoidance scheme. The company here entered into several variants of a disguised remuneration scheme under which individuals were rewarded by means of loans. The scheme failed and the company was assessed to PAYE in a sum exceeding £2m. This caused the company to go into liquidation without any of that amount being paid.
The liquidator sought recovery of the relevant PAYE and NIC amount from each of the individuals who had benefitted from the scheme. This was on the basis that the company had a prohibited purpose in entering into these schemes i.e. it intended to avoid a tax liability arising. Alternatively he argued that the purpose...
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If you do not subscribe but are a registered user, please enter your details in the following boxes:
