Macklin v Revenue & Customs [2013] UKFTT 554 (TC) (10 October 2013)

Macklin v Revenue & Customs [2013] UKFTT 554 (TC) (10 October 2013)

The SRP is not 'established in the USA' for the purposes of Article 17(1)(b) of the DTA because it is not established under and in conformity with US tax legislation relating to pension schemes; its exemption from US tax arises from World Bank immunities, not from US pension law. Therefore, Mr Macklin is not entitled to exemption from UK tax on his World Bank pension under the DTA. The discovery assessment under section 29 TMA was competent as the statutory conditions were satisfied.

Citation
[2013] UKFTT 554 (TC)
Parties
Appellant: Michael Macklin; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
10 October 2013
Procedural Posture
Income Tax Appeal / First Tier Tribunal (tax) Decision
Outcome
Appeal dismissed
Legal Topics
Double Taxation Agreement, Pension Taxation, Discovery Assessment, Interpretation of Treaties
Tax Law International Taxation Double Taxation Agreement Pension Taxation Discovery Assessment Interpretation of Treaties

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 12 Party arguments 2 Amounts and remedies 6
Sign in to unlock

Parties

Michael Macklin

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Income Tax Appeal / First Tier Tribunal (tax) Decision

Legal Issues

  1. 1 Whether the World Bank Staff Retirement Plan (SRP) is a 'pension scheme established in the USA' for the purposes of Article 17(1)(b) of the UK-USA Double Tax Agreement (DTA)
  2. 2 Whether HMRC was entitled to make a discovery assessment under section 29 Taxes Management Act 1970 for the year 2003/04

Ratio Decidendi

The SRP is not 'established in the USA' for the purposes of Article 17(1)(b) of the DTA because it is not established under and in conformity with US tax legislation relating to pension schemes; its exemption from US tax arises from World Bank immunities, not from US pension law. Therefore, Mr Macklin is not entitled to exemption from UK tax on his World Bank pension under the DTA. The discovery assessment under section 29 TMA was competent as the statutory conditions were satisfied.

Court Disposition

Appeal dismissed

Orders

  • Mr Macklin's appeal against HMRC's decisions and assessments is dismissed.
  • The assessments and refusal of error claim by HMRC are upheld.