As Iliketax has pointed out the FTT in Higgs makes it quite clear that the purported discretion in disapplying the PAYE regs is not restricted to end users. Keith Gordon, for the taxpayer, had sought to argue that the discretion had effectively relieved the wrong entity; he argued that the liability properly fell upon the agency. Presumably this line of argument is very similar to the “other weapons” alluded to by WebberG.
The FTT concluded that “ the subject of the discretion, i.e. “the payer” as described in that section has a naturally wide meaning and may refer to any person within the ambit of the discretion. That includes the appellants and it is not restricted to the “end users”.
As it stands it does not therefore matter one jot upon whom the obligation to account for PAYE HMRC fell. The discretion is so broad (and unfettered) that it can relieve “any person” within its ambit. Indeed that can be the only logical conclusion to the illogical one that the discretion exists in the form HMRC believe.
So Higgs (& Hoey) currently hole a resolution strategy based entirely on arguing that loans were income all along but that the tax should be pursued from an(y)other party.
I am more than 65% confident someone is selling the Emperor’s new clothes.
The FTT concluded that “ the subject of the discretion, i.e. “the payer” as described in that section has a naturally wide meaning and may refer to any person within the ambit of the discretion. That includes the appellants and it is not restricted to the “end users”.
As it stands it does not therefore matter one jot upon whom the obligation to account for PAYE HMRC fell. The discretion is so broad (and unfettered) that it can relieve “any person” within its ambit. Indeed that can be the only logical conclusion to the illogical one that the discretion exists in the form HMRC believe.
So Higgs (& Hoey) currently hole a resolution strategy based entirely on arguing that loans were income all along but that the tax should be pursued from an(y)other party.
I am more than 65% confident someone is selling the Emperor’s new clothes.
Originally posted by Iliketax
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