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Supreme Court Decision - Share options and banker's bonuses
It has taken 12 years to get this far and my sources tell me that DB may well go further yet with a case going to ECJ as apparently the sort of scheme seen here was good in Germany at the time.
UBS of course have no such fall back unless that have some sort of parallel agreement with the EU.
This is a complicated decision and whilst I expect the headline writers to grab the "HMRC Victory" angle, I'm not so sure that it means that much for contractor schemes (let's face it a win would have been better).
As such I'm going to take my time and read the thing first before making public any thoughts.
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apparently the sort of scheme seen here was good in Germany at the time.
No, this was a very contrived scheme to get around UK tax rules. It was a way of dressing up a bonus scheme as something else. It had absolutely nothing to do with anything being done in Germany (other than there being a German bonus scheme).
I'm not so sure that it means that much for contractor schemes
The first part of the para 97 of the judgement would be worrying reading for employees who got loans (e.g. Murray Group):
Originally posted by Lord Reed
It may well be that, in an appropriate case, the statutory term “money”, construed purposively, might apply to arrangements which, viewed realistically, were no more than disguised or artificially contrived methods of paying cash to employees.
Although "money" is not relevant (in terms of income) to the self-employed, the message underlying the case is very clear.
[QUOTE=Iliketax;2221272]No, this was a very contrived scheme to get around UK tax rules. It was a way of dressing up a bonus scheme as something else. It had absolutely nothing to do with anything being done in Germany (other than there being a German bonus scheme).
And pigs may fly.
The first part of the para 97 of the judgement would be worrying reading for employees who got loans (e.g. Murray Group):
The courts seem to have changed their approach to tax avoidance cases in recent years.
There's a lot more use of the purposive than the literal.
Direct political interference? Probably not. More likely they are just reflecting public opinion which, of course, has been whipped up by politicians. The Justice System, which is paid for by taxes, has also faced severe cuts in recent years. The legal aid budget has been slashed. Courts are closing. Jobs have been lost, pay frozen.
Doesn't matter but one way or another seems like courts are aligned with HMRC's view. Whatever be the reason, whether we like it or not, we need to make decision based on all the information available. Until before this decision things were different but now I am not of the view that courts will help us. And if courts are with HMRC I don't understand how Big Group can motivate HMRC to change analysis.
Doesn't matter but one way or another seems like courts are aligned with HMRC's view. Whatever be the reason, whether we like it or not, we need to make decision based on all the information available. Until before this decision things were different but now I am not of the view that courts will help us. And if courts are with HMRC I don't understand how Big Group can motivate HMRC to change analysis.
The share option scheme judgement does not necessarily apply to other areas of the law - I'm sure this was part of an employees remuneration package.
Not only does the case involve banks, the largest hate target for a generation, but HMRC and the Courts know that the banks involved have got plenty of cash. All win for everyone involved.
Whereas individuals do not have the same resources so many are facing insolvency.
Even the most ardent to HMRC supporters are of the view that collecting a percentage of the tax they want as a certainty is better than years in court. Even then, HMRC will not be able to collect all the money from many individuals as they simply don't have the resources available - and bankruptcy won't get them anything either.
As one of the HMRC officers told us about the impending bankruptcy... "it's fully deserved".
Clearly no money spent on training at the charm school.
BG is helping many people stuck at the end of appalling treatment by HMRC. Treatment that is against their own charter and may well be illegal.
BG can at least campaign for a humane settlement, even if it can't fight retrospective interpretation of the law.
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