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Perks of the job: the CJEU decision in GE Aircraft Engine Services Ltd

09 January 2023 / Waqar Shah , Tabassum Khan
Issue: 4871 / Categories: Comment & Analysis
106032
Perks of the job?

Key points

  • GE Aircraft Engine Services Ltd resolves a dispute on the tax treatment of employee incentive vouchers.
  • The crux of the question was whether the supply of vouchers by a taxable person for their staff was for its private use (or its staff’s private use) or for purposes other than for its business.
  • GE argued that it’s ‘Above and Beyond’ voucher scheme was not within the scope of Article 26(1)(b) as it was evidently set up for a business purpose.
  • Departing from the AG’s opinion the CJEU confirmed that GE’s voucher scheme did not fall within the scope of Article 26(1)(b).
  • The CJEU judgment is a welcome conclusion to the incentive scheme saga providing a clear and concise position on the business purpose/private use debate.

On 17 November 2022 the Court of Justice of the European Union (CJEU) handed down its judgment in the GE Aircraft Engine...

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