- Income tax deeming provision does not extend to the interpretation of double tax treaty (Fowler v HMRC)
- What are the practical implications of this case?
- What was the background?
- What did the court decide?
- Case details
Tax analysis: The Supreme Court, by a unanimous judgment, has overturned the decision of the Court of Appeal, and reinstated the decision of the Upper Tribunal (UT) in favour of HMRC. In particular, the Court ruled that the deeming provision in section 15 of the Income Tax (Trading and Other Income) Act 2005 (ITTOIA 2005), which treats the performance of duties of employment as a diver as trading in the UK for income tax purposes, does not extend to the question of which Article of the South Africa-UK double tax treaty (DTT) applies to those activities. The result is that they are taxable in the UK in accordance with Article 14 (Income from Employment) and not Article 7 (business profits).
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