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R Fryett (TC3360)
The taxpayer was a pilot for the Hong Kong-based Cathy Pacific Airways. He lived in Devon and was UK resident.
He dealt with the Hong Kong (HK) office in connection with all aspects of his duties and reported to the director of flight operations who lived in the Chinese city.
The taxpayer received pay in sterling to his UK bank account but he declared his salary in HK dollars and paid tax in HK. He applied to HMRC for an NT code on the basis no UK tax was due on his salary by virtue of the UK/HK double taxation agreement (DTA).
The Revenue said he was liable to pay tax on his worldwide income because he was resident in the UK.
The DTA did not preclude the UK from taxing his employment income but envisaged that income could be taxed by both countries. The agreement provided for...
