Hoey v Revenue & Customs (PROCEDURE : INCOME TAX - IT contractor employed by offshore company) [2019] UKFTT 489 (TC) (29 July 2019)

Hoey v Revenue & Customs (PROCEDURE : INCOME TAX - IT contractor employed by offshore company) [2019] UKFTT 489 (TC) (29 July 2019)

Discovery assessments under s29 TMA 1970 were validly made as HMRC officers made a genuine discovery of insufficiency of tax; HMRC had and lawfully exercised discretion under s684(7A) ITEPA 2003 to disapply PAYE regulations; TOAA legislation applied to Mr Hoey's arrangements, subject to the amount of income of the person abroad; EU law did not prevent application of TOAA as discrimination was justified by the tax avoidance purpose.

Citation
[2019] UKFTT 489 (TC)
Parties
Appellant: Stephen Hoey; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
29 July 2019
Procedural Posture
Income Tax Appeal / First Tier Tribunal (tax) Decision
Outcome
Appeal dismissed
Legal Topics
Income Tax, PAYE Regulations, Discovery Assessments, Transfer of Assets Abroad, Employee Benefit Trusts, Tax Avoidance, Free Movement of Capital
Tax Law Employment Law European Union Law Income Tax PAYE Regulations Discovery Assessments Transfer of Assets Abroad Employee Benefit Trusts +2 more

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Parties

Stephen Hoey

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Income Tax Appeal / First Tier Tribunal (tax) Decision

Legal Issues

  1. 1 Validity of discovery assessments under s29 TMA 1970
  2. 2 HMRC's discretion under s684(7A) ITEPA 2003 to disapply PAYE regulations
  3. 3 Application of Transfer of Assets Abroad (TOAA) legislation

Ratio Decidendi

Discovery assessments under s29 TMA 1970 were validly made as HMRC officers made a genuine discovery of insufficiency of tax; HMRC had and lawfully exercised discretion under s684(7A) ITEPA 2003 to disapply PAYE regulations; TOAA legislation applied to Mr Hoey's arrangements, subject to the amount of income of the person abroad; EU law did not prevent application of TOAA as discrimination was justified by the tax avoidance purpose.

Court Disposition

Appeal dismissed

Orders

  • Discovery assessments for 2008-09 and 2009-10 upheld
  • Closure notice for 2010-11 upheld