0810MR73 - Case No CH/2004/APP/0271 Neutral Citation...

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Case No: CH/2004/APP/0271 Neutral Citation Number: [2004] EWHC 2248 (Ch) IN THE HIGH COURT OF JUSTICE CHANCERY DIVISION Royal Courts of Justice Strand, London, WC2A 2LL Date: Friday, 8 th October 2004 Before : THE HONOURABLE MR JUSTICE PARK - - - - - - - - - - - - - - - - - - - - - Between : Usetech Limited Appellant - and - Graeme Young (HM Inspector of Taxes) Respondent - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Simon Devonshire (instructed by Nelsons ) for the Appellant Akash Nawbatt (instructed by the Solicitor of Inland Revenue ) for the Respondent - - - - - - - - - - - - - - - - - - - - - Approved Judgment I direct that pursuant to CPR PD 39A para 6.1 no official shorthand note shall be taken of this Judgment and that copies of this version as handed down may be treated as authentic. ............................. Mr Justice Park
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Mr Justice Park Approved Judgment Usetech Ltd- v –Young (HMIT) Mr Justice Park : Abbreviations, dramatis personae, etc 1. These are as follows. ABB ABB Vetco Gray (UK) Limited, the ‘end user’ of the services of Mr Hood; a company which provided a range of equipment to the oil and gas industry. Mr Devonshire Simon Devonshire, counsel for Usetech. EAT Employment Appeal Tribunal. Hood, Mr William Hood, specialist in a software system used by ABB, called Pro-Engineer; shareholder in and director of Usetech. IR35 The reference number of an Inland Revenue Press Release of 2000, which led to the enactment of the legislative provisions which are in point in this case. Nawbatt, Mr Akash Nawbatt, counsel for the Inspector of Taxes, the respondent to this appeal. NES NES International Limited, a company described as an agency company which provided technical recruitment services. NICs National Insurance Contributions Usetech Usetech Limited, the appellant on this appeal; ‘one man company’ owned by Mr Hood, which provided his services to end users. Overview 2. This is a tax and NICs appeal by the taxpayer, Usetech, against a decision of a Special Commissioner, Mr Colin Bishopp, dated 12 March 2004. The decision determined a question of principle concerning the liability to tax and NICs of Usetech and its principal shareholder and director, Mr Hood. Usetech was a ‘one man company’ whose business consisted of making the services of Mr Hood available to third party
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Mr Justice Park Approved Judgment Usetech Ltd- v –Young (HMIT) users. By transactions entered into in May 2000 Mr Hood’s services were made available to ABB, and he worked in the business of ABB for about 17 months from 1 June 2000. The transactions involved not only Mr Hood, Usetech and ABB, but also, in a manner which I will describe later, another company, NES. Mr Hood had no beneficial interest in NES. The question of principle is whether the transactions attracted the operation of provisions introduced, both for tax and for NICs, in 2000 and commonly referred to as the IR35 legislation. IR35 was the reference number of an Inland Revenue Press Release which had foreshadowed the legislation.
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  • Fall '07
  • SCHIESS
  • Income tax in the United States, Standard form Contract, Mr Hood

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