Contrary to HMRC’s view, the debtor’s residence is not the most important factor when determining whether income has a UK source, writes Peter Vaines (Squire Patton Boggs).
The recent case of Ardmore Construction Ltd and Perrin v HMRC [2015] UKUT 633 (reported in Tax Journal 24 November 2015) was concerned with the meaning of income arising in the UK and therefore whether it was subject to the deduction of tax at source. The classic authority on this matter is the celebrated Greek Bank case (Westminster Bank Executor and Trustee Company (Channel Islands) Ltd v National Bank of Greece (1970) 46 TC 472).
In the Greek Bank case the debtor was a foreign company; there was a guarantee by another foreign company secured on foreign assets; and payment was to be made outside the UK to persons outside the UK. The...
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Contrary to HMRC’s view, the debtor’s residence is not the most important factor when determining whether income has a UK source, writes Peter Vaines (Squire Patton Boggs).
The recent case of Ardmore Construction Ltd and Perrin v HMRC [2015] UKUT 633 (reported in Tax Journal 24 November 2015) was concerned with the meaning of income arising in the UK and therefore whether it was subject to the deduction of tax at source. The classic authority on this matter is the celebrated Greek Bank case (Westminster Bank Executor and Trustee Company (Channel Islands) Ltd v National Bank of Greece (1970) 46 TC 472).
In the Greek Bank case the debtor was a foreign company; there was a guarantee by another foreign company secured on foreign assets; and payment was to be made outside the UK to persons outside the UK. The...
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:
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