| Commentary

(g) Territoriality

| Commentary

(g)     Territoriality

The impact of PAYE is not limited to United Kingdom employers. Collection of income tax through PAYE can be required of a foreign employer, but only if that employer has a sufficient 'tax presence' in the United Kingdom (Clark v Oceanic Contractors Incorporated [1983] 2 AC 130, 56 TC 183, [1983] STC 35, HL). A tax presence may be established, for example, by carrying on a trade which is subject to United Kingdom tax legislation. So the reach of PAYE can even extend (as, strikingly, it did in Clark v Oceanic Contractors

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