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Whose law is it?
KEY POINTS
- An insolvent company voted remuneration to a director to clear his loan account.
- The PAYE income tax and National Insurance liabilities were not paid to HMRC.
- Did the director receive his net salary knowing that tax had not been deducted?
- The dissenting judgment took the view that the director as the company’s controlling mind knew that payment would not be made.
- The PAYE Regulations are not designed to protect a company’s creditors.
Am I the only one to be worried about the dissenting decision of Sandi O’Neill in the First-tier Tribunal case of Stephen West v HMRC (TC 5285)?
The facts were fairly straightforward. Mr West owned a company Astral Telecom Ltd. In mid-2011 he became concerned about whether the company might be insolvent. He took advice from...
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