Litigation Recent Decisions 23/04/96

Failure to account for tax alleged to have been deducted

R v Inland Revenue Commissioners, ex parte McVeigh (1996).

QBD (May J).

Summary: Lawful direction to a company director requiring him to pay tax on a bonus which his company had purported to pay less tax but which tax had never been accounted for to the Inland Revenue before the company became insolvent.

Director's application for judicial review of revenue's direction to him under Income Tax (Employment) Regulations 1993/744 reg.49 (5) to pay tax on a bonus paid to him by his company from which the company had purported to deduct tax. The applicant had never declared this bonus to the revenue and the company had never accounted for the tax, having gone into liquidation since.