Although the Rangers decision can mean that income tax is payable in respect of contractor loan schemes, there remains a question of whether the contractor is ultimately liable to pay the tax. In Hoey, the Upper Tribunal would have found that he was not, but it concluded it did not have jurisdiction to do so. It rejected HMRC’s alternative argument that there was a liability under the transfer of assets abroad code, as the consequence of payments being a person’s income is that they are deductible in computing the employer’s profits. This was relevant, as on the facts there was no EU law defence to a charge applying.
If you are not a subscriber, subscribe now to read this content.
Although the Rangers decision can mean that income tax is payable in respect of contractor loan schemes, there remains a question of whether the contractor is ultimately liable to pay the tax. In Hoey, the Upper Tribunal would have found that he was not, but it concluded it did not have jurisdiction to do so. It rejected HMRC’s alternative argument that there was a liability under the transfer of assets abroad code, as the consequence of payments being a person’s income is that they are deductible in computing the employer’s profits. This was relevant, as on the facts there was no EU law defence to a charge applying.
If you are not a subscriber, subscribe now to read this content.
.jpg?sfvrsn=535d5660_1)
.tmb-editorspic.jpg?sfvrsn=df04ab27_1)
