CORPORATION TAX – computation of profits – deductions – payments by Appellant before 2001 to employee benefit trust and after 2002 to family benefit trust – whether wholly and exclusively expended for the purposes of the Appellant’s trade – yes – whether Appellant’s profits computed in accordance with generally accepted accountancy practice – yes – whether payments to employee benefit trust were potential emoluments and so precluded from deduction for corporation tax purposes when paid – yes – whether payments to family benefit trust were made to an employee benefit scheme and so precluded from deduction for corporation tax purposes when paid – yes – ICTA 1988 ss 42 and 74; FA 1989 s 43(11); FA 2003 s143 and Sch 24
EMPLOYMENT INCOME – whether payments by Appellant to trusts were payments of emoluments or earnings giving rise to an obligation to deduct income tax and pay it to the Revenue – no – before 2003 ICTA 1988 ss 19(1), 131 and 203(1) and Income Tax (Employments) Regulations 1993 SI 1993 No. 744; after 2003 ITEPA 2003 ss 1, 6, and 684 and Income Tax (PAYE) Regulations 2003 SI 2003 No. 2682 Reg 80
NATIONAL INSURANCE CONTRIBUTIONS – whether payments by Appellant to trusts were earnings paid for the benefit of earners – no – Social Security Contributions and Benefits Act 1992 s6(1); Social Security Contributions (Transfer of Functions, etc) Act 1999 s8(1)(c)
Citations:
[2008] UKSPC SPC00698, [2008] STI 1923, 2008] STC (SCD) 1062
Links:
Jurisdiction:
England and Wales
Cited by:
Incorrect – RFC 2012 Plc (Formerly The Rangers Football Club Plc) v Advocate General for Scotland SC 5-Jul-2017
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 . .
Lists of cited by and citing cases may be incomplete.
Corporation Tax, Taxes – Other
Updated: 18 August 2022; Ref: scu.642458