| Commentary

(n) Negative earnings

| Commentary

(n)     Negative earnings

An employee may receive earnings, taxable as earnings in the year in which they are paid, which he is nonetheless required to repay to his employer in a subsequent tax year. Such a situation might arise where a bonus is subject to a clawback provision, or where an employee acts in breach of a term of compromise agreement, triggering some condition which defeats his entitlement to the payment. There is no general entitlement to a refund of tax which was properly charged and paid when it was due. ITEPA 2003 s 11 imports

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