Payer has UK tax presence

The defendant a Greek citizen was a director and the only shareholder of a company and its subsidiary which carried on business in the UK. He lived in Kent and had UK earnings on which he paid tax.

The claimant was a director of both businesses – and had been an employee of the subsidiary until March 2011. The defendant had agreed the claimant would have an interest in the company.

A deed was signed under which the defendant would make a series of payments to the claimant. The sums were to be paid in full without deductions other than those legally required.

The defendant fell behind with the payment schedule and the deed was varied to give more time for payment. The claimant brought proceedings claiming a payment under the deed.

At issue was the nature of the payments and whether tax should be...