‘Presence’ in the UK

HMRC had issued decisions requiring Goldman Sachs International (GSI) to pay secondary National Insurance contributions on the exercise of unapproved share options.

GSI appealed on the grounds that an associated company in the British Virgin Islands Goldman Sachs Ltd (GSL) was liable instead.

The issue was whether GSL had the necessary ‘presence’ within the UK to fall within SI 1979/591 reg 119(1)(b) as the appellant contended or whether it was a ‘foreign employer’ under SI 1978/1689 reg 1(2) as HMRC contended. This was a preliminary issue which would determine which company HMRC was entitled to pursue for the contributions. Clearly HMRC would prefer not to be pursuing a company which was registered in the British Virgin Islands.

The First-tier Tribunal found as a fact that...