The company made available to certain employees discretionary annual bonuses which were paid instead by way of shares and received dividends. It now appealed against findings that the payments were taxable subject to Schedule F rates and were liable also to National Insurance.
Held: Applying White, The court should not be seduced by the form in which the payments reached employees, but rather should focus upon the character of the receipt in the hands of the recpient.
Judges:
Maurice Kay, Arden, Moses LJJ
Citations:
[2011] EWCA Civ 1414, [2011] BTC 705, [2011] STI 3268, [2012] STC 582
Links:
Statutes:
Income and Corporation Taxes Act 1988
Jurisdiction:
England and Wales
Citing:
Cited – White v Franklin CA 1965
The share owners placed half of the issued shares in the company in trust for the taxpayer, in order to persuade him to continue his involvement in the family company as an active director. The trust provided that the income from the shares should . .
At SCIT – PA Holdings Ltd v Revenue and Customs SCIT 29-Aug-2008
SCIT The Revenue issued separate decisions that certain sums paid to employees of Holdings in the three years to April 2003 were emoluments liable to income tax under PAYE and earnings on which Holdings is liable . .
At FTTTx – PA Holdings Ltd and Another v Revenue and Customs FTTTx 7-May-2009
FTTTx Income tax – other – whether sums paid to individuals by a company as a dividend financed from a capital contribution to the company from employee benefits funds derived from the individuals’ employing . .
At UTTC – P A Holdings UTTC 7-Jul-2010
UTTC Income Tax – Tax avoidance scheme – Dividend from new company instead of bonus: whether Ramsay jurispudence applies – Schedule E and meaning of emoluments from employment – Schedule F and meaning of dividend . .
Cited by:
Cited – Morgan v Department for Employment and Learning NIIT 24-Jan-2014
. .
Lists of cited by and citing cases may be incomplete.
Employment, Taxes – Other, Income Tax
Updated: 28 September 2022; Ref: scu.449042