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Overseas benefits

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28 February 2012

Issue: 4343 / Categories: Forum & Feedback

A government employee who works around the world is also the majority shareholder of a company registered in the Republic of Ireland. That company provides him with a luxury car and advice is requested on the benefit-in-kind implications

Our client is a UK resident and domiciled individual whose full-time job is working for Her Majesty’s forces wherever in the world he maybe posted.

He also has a 70% shareholding in a limited company registered in the Republic of Ireland. The Irish company is not run from the UK the other shareholder director (also a UK resident) handles the business of the company which is receiving a licence fee/royalty/commission from the company’s sole product.

The sole customer is a German company and all business negotiations have taken place overseas i.e. in Ireland and Germany and not in the UK.

The company’s management is therefore deemed to be overseas and not in the UK so no deemed establishment has been made in the UK for this Irish business.

(NB with internet access presumably the UK residents will have access to the bank account...

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Overseas benefits

© Copyright LexisNexis 2024. All rights reserved.

28 February 2012

A government employee who works around the world is also the majority shareholder of a company registered in the Republic of Ireland. That company provides him with a luxury car and advice is requested on the benefit-in-kind implications

Our client is a UK resident and domiciled individual whose full-time job is working for Her Majesty’s forces wherever in the world he maybe posted.

He also has a 70% shareholding in a limited company registered in the Republic of Ireland. The Irish company is not run from the UK the other shareholder director (also a UK resident) handles the business of the company which is receiving a licence fee/royalty/commission from the company’s sole product.

The sole customer is a German company and all business negotiations have taken place overseas i.e. in Ireland and Germany and not in the UK.

The company’s management is therefore deemed to be overseas and not in the UK so no deemed establishment has been made in the UK for this Irish business.

(NB with internet access presumably the UK residents will have access to the bank account...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Subscribe Now...

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.

Once you have registered, you will receive an email directing you back to read this item in full.

Issue:

4343

Categories: Forum & Feedback [1]

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