Rangers [2017] UKSC 45

WTLR Issue: Autumn 2017 #169

RFC 2012 Plc (IN LIQUIDATION) (FORMERLY THE RANGERS FOOTBALL CLUB PLC) (APPELLANT)

V

ADVOCATE GENERAL OF SCOTLAND (RESPONDENT) (SCOTLAND)

Analysis

The appeal concerned a tax avoidance scheme by which employers paid remuneration to their employees through an employees’ remuneration trust in the hope that the scheme would avoid liability to income tax and Class 1 national insurance contributions. The question on appeal was whether an employee’s remuneration was taxable as their emoluments or earnings when it was paid to a third party in circumstances in which the employee had no prior entitlement to receive it himself or herself.

Counsel details

Counsel For the appellant: Andrew Thornhill QC (Pump Court Tax Chambers, 16 Bedford Row, London WC1R 4EF, tel 020 7414 8080, e-mail clerks@pumptax.com), Roddy Dunlop QC (Axiom Advocates, Advocates Library, Parliament House, Edinburgh EH1 1RF, tel 0131 226 2881, e-mail roddy.dunlop@axiomadvocates.com) , Mark Studer (Wilberforce Chambers, 8 New Square, Lincoln’s Inn, London WC2A 3QP, tel 020 7306 0102, e-mail chambers@wilberforce.co.uk), Jonathan Bremner (Pump Court Tax Chambers, 16 Bedford Row, London WC1R 4EF, tel 020 7414 8080, e-mail clerks@pumptax.com) (instructed by Brodies LLP (15 Atholl Crescent, Edinburgh, EH3 8HA, tel 0131 228 3777, e-mail mailbox@brodies.com)).

For the respondent: Julian Ghosh QC (Pump Court Tax Chambers, 16 Bedford Row, London WC1R 4EF, tel 020 7414 8080, e-mail clerks@pumptax.com), Mark Herbert QC (Pump Court Tax Chambers, 16 Bedford Row, London WC1R 4EF, tel 020 7414 8080, e-mail clerks@pumptax.com), Joseph Goldsmith (5 Stone Buildings, Lincoln’s Inn, London WC2A 3XT, tel 020 7242 6201, e-mail clerks@5sblaw.com), and Barbara Belgrano (Pump Court Tax Chambers, 16 Bedford Row, London WC1R 4EF, tel 020 7414 8080, e-mail clerks@pumptax.com) (instructed by in-house solicitor).

Cases referenced

Cases in bold have further reading - click to view.

  • Abbott v Philbin (Inspector of Taxes) [1961] A.C. 352
  • Aberdeen Asset Management Plc v Revenue and Customs Commissioners [2013] CSIH 84
  • Barclays Mercantile Business Finance Ltd v Mawson (Inspector of Taxes) [2002] EWCA Civ 1853; [2004] UKHL 51
  • Blakiston v Cooper (Surveyor of Taxes) [1909] A.C. 104; HL; 10 December 1908
  • Brumby (Inspector of Taxes) v Milner [1976] UKHL 7
  • Collins v Revenue and Customs Commissioners [2009] EWHC 284 (Ch)
  • Dextra Accessories Ltd v MacDonald (Inspector of Taxes) [2005] UKHL 47; [2003] WTLR 349
  • Edge v Pensions Ombudsman [1999] EWCA Civ 2013
  • Edwards v Roberts Unreported; No court; 01 January 1935
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  • Forde & McHugh Ltd v Revenue and Customs Commissioners [2014] UKSC 14
  • Garforth (Inspector of Taxes) v Newsmith Stainless Ltd [1979] 1 W.L.R. 409
  • Hadlee and Sydney Bridge Nominees v Inland Revenue Commissioners [1993] A.C. 524
  • Hardoon v Belilios (Hong Kong) [1901] AC 118
  • Hartland v Diggines (Inspector of Taxes) [1926] A.C. 289
  • Heaton (Inspector of Taxes) v Bell [1969] 46 TC 211; [1970] AC 728
  • Hochstrasser (Inspector of Taxes) v Mayes [1960] A.C. 376
  • John Lewis Properties Plc v Inland Revenue Commissioners [2002] 1 W.L.R. 35
  • Kirkness (Inspector of Taxes) v John Hudson & Co Ltd [1955] A.C. 696
  • Laidler v Perry [1966] A.C. 16
  • Leeds Design Innovation Centre Ltd v Revenue and Customs Commissioners [2014] UKFTT 9 (TC);
  • MacNiven (Inspector of Taxes) v Westmoreland Investments Ltd [2001] UKHL 6
  • Mettoy Pension Trustees Ltd v Evans [1990] 1 W.L.R. 1587
  • Owen v Pook (Inspector of Taxes) [1970] A.C. 244
  • Scottish Provident Institution v Inland Revenue Commissioners [2004] UKHL 52
  • Sempra Metals Ltd v Revenue and Customs Commissioners [2008] S.T.C. (S.C.D.) 1062
  • Sloane Robinson Investment Services Ltd (formerly Sloane Robinson Investment Management Ltd) v Revenue and Customs Commissioners [2012] UKFTT 451 (TC)
  • Templeton (Inspector of Taxes) v Jacobs [1996] 1 W.L.R. 1433
  • Tennant v Smith (Surveyor of Taxes) [1892] A.C. 150
  • UBS AG v Revenue and Customs Commissioners [2016] UKSC 13
  • Wilkins v Rogerson [1961] Ch. 133
  • WT Ramsay Ltd v Inland Revenue Commissioners [1982] A.C. 300

Legislation referenced

Legislation in bold has further reading - click to view.

  • Income and Corporation Taxes Act 1988, ss19, 131, 202, 203
  • Income Tax (Earnings and Pensions) Act 2003, ss6, 9, 13, 62, 683
  • Income Tax (Employments) Regulations 1993
  • Income Tax (Pay As You Earn) Regulations 2003