This month's review of tax cases and tax news including gold bullion payment schemes slated, FRS 105 tax compliance, domicile in Henderson, First Tier Tribunal upholds 'tax on tax' dispute
Gold bullion remuneration schemes ‘abnormal’, say anti avoidance experts
Arrangements where workers are paid using gold bullion have been described as ‘abnormal’ by the GAAR advisory panel in its first official statement since it was established in 2013.
The panel, set up to adjudicate on the application of the General Anti-Abuse Rule (GAAR) on tax avoidance schemes, issued three 11-page documents, detailing its view of gold bullion schemes for three example taxpayers. They are ‘the company’, ‘Mr X’, a director and indirect 51% shareholder in the company and ‘Mrs Y’, the other director and 49% company shareholder.
The panel concluded: ‘It is abnormal for an employer to reward employees using gold. It is abnormal where parties have a choice as to whether or not to introduce an asset into arrangements, for the asset to be sold immediately after the purchase. In this case we can see no reason for the steps to involve gold, other than for tax purposes.’
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