The appellant UK company (ICM), a wholly-owned subsidiary of an Isle of Man company (Island), was registered for gross payment under the construction industry scheme (CIS).
Contractors were made payments to ICM without deductions, due to ICM’s gross payment status. ICM paid the money received from the contractors to Island, also without deduction of tax. Island then made payments to construction workers without making any deductions for CIS purposes.
HM Revenue and Customs (HMRC) issued notices of determinations for the tax years 2002/03 to 2008/09, and for the period May 2009 to February 2010. In addition, HMRC withdrew ICM’s gross payment certificate for failing to make deductions. ICM’s appeal to the First-tier Tribunal (FTT) ([2013] UKFTT 207 (TC)) was dismissed. ICM appealed.
The Upper Tribunal (UT) considered the contractual documents and arrangements between the parties. The
