Nigel Doran (Macfarlanes) examines the latest in a line of cases in which employer company and employee have tried to dress up earnings as a form of non-taxable payment.
The recent decision of the First-tier Tribunal (FTT) in Root 2 Tax Ltd v HMRC [2019] UKFTT 744 (TC) is the latest in a long line of cases in which highly taxed earnings have been delivered through a composite arrangement in a form that the employer company and the employee hoped would be taxed at a lower rate or ideally not taxed at all. Leading examples are DTE Financial Services Ltd v Wilson [2001] STC 777 (purchased interest in non-resident trust) PA Holdings Ltd v HMRC [2012] STC 582 (dividends and share redemptions) and RFC 2012 Plc v Advocate General [2017] UKSC 45 (loans from EBTs).
If the case name seems familiar this will...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
Nigel Doran (Macfarlanes) examines the latest in a line of cases in which employer company and employee have tried to dress up earnings as a form of non-taxable payment.
The recent decision of the First-tier Tribunal (FTT) in Root 2 Tax Ltd v HMRC [2019] UKFTT 744 (TC) is the latest in a long line of cases in which highly taxed earnings have been delivered through a composite arrangement in a form that the employer company and the employee hoped would be taxed at a lower rate or ideally not taxed at all. Leading examples are DTE Financial Services Ltd v Wilson [2001] STC 777 (purchased interest in non-resident trust) PA Holdings Ltd v HMRC [2012] STC 582 (dividends and share redemptions) and RFC 2012 Plc v Advocate General [2017] UKSC 45 (loans from EBTs).
If the case name seems familiar this will...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
