SXIT EMPLOYEE BENEFIT TRUST – whether deduction of contributions postponed until taxable as emoluments under FA 1989 s.43(11) – no – whether sub-funds in favour of directors who controlled the company taxable as emoluments on Ramsay principles or as a benefit in kind under TA 1988 s.154 – no — whether loans to directors taxable … Continue reading Dextra Accessories Ltd and others v Inspector of Taxes: SCIT 25 Jul 2002
FTTTx Corporation tax. Employee benefit trust. Section 43(11) Finance Act 1989. Is a trustee an intermediary? Dextra Accessories and Sempra Metals considered. Citations: [2012] UKFTT 719 (TC) Links: Bailii Jurisdiction: England and Wales Corporation Tax Updated: 17 November 2022; Ref: scu.472735
The Court was asked whether an employee’s remuneration is taxable as his or her emoluments or earnings when it is paid to a third party in circumstances in which the employee had no prior entitlement to receive it himself or herself. Held: The company’s appeal failed. The purposive approach to the interpretation of the general … Continue reading RFC 2012 Plc (Formerly The Rangers Football Club Plc) v Advocate General for Scotland: SC 5 Jul 2017
The company had set up a trust for the benefit of its employees. The Inspector sought to tax the payments made into the trust as ’emoluments’ Held: The appeal was allowed. The payments were ‘potential emoluments’ which were held by the trustees ‘with a view to their becoming relevant emoluments’. The employers were not allowed … Continue reading MacDonald (HM Inspector of Taxes) v Dextra Accessories Ltd and others: CA 28 Jan 2004
The inspector sought to disallow charging to current tax period payments made by the employer to an employee benefit trust. Held: The payments were not made and held by the trustees ‘with a view to becoming relevant emoluments’ within the section, and so were deductible from profits. The provision sought to restrain charging against current … Continue reading MacDonald (Inspector of Taxes) v Dextra Accessories Ltd and Others: ChD 16 Apr 2003
The taxpayer companies had paid funds into a trust for employees. They sought to set off the payments against their liability to corporation tax. The revenue argued that they were deductible only in the year in which they were paid to the employees. . .
