Peter Knox KC Instructed by Charles Russell Speechlys LLP (London) for the Respondent
James Gale Instructed by Invictus Chelsea John (Trinidad) for the Appellant
Case summary
Case ID
JCPC/2023/0042
Jurisdiction
Trinidad and Tobago
Parties
Appellant(s)
Louis Andrew Monteil
Respondent(s)
Board of Inland Revenue
Issue
(1) On what basis is the Board of Inland Revenue entitled to raise a tax assessment following receipt of an individual’s income tax return? (2) Can the Board of Inland Revenue recover unpaid income tax directly from an employee following an employer’s failure to deduct the correct amount of tax under the statutory pay-as-you-earn (PAYE) regime?
Facts
The Appellant, Mr Monteil, filed an income tax return for tax year 2007/2008, declaring the sources of his income to be entirely derived from emoluments (i.e. employment salary). The Respondent, the Board of Inland Revenue, accepted the return but subsequently selected it for an audit examination. The Respondent then notified the Appellant on 1 October 2012 that it had assessed the Appellant for an additional income tax liability (including interest) on the basis that the Appellant’s emolument income was significantly greater than the amount set out in his tax return. The Appellant’s employer should have deducted this amount under the PAYE regime under section 99 of the Income Tax Act.On 13 January 2015, the Appellant objected to this assessment and appealed to the Tax Appeal Board. The Appellant argued that he had no obligation to pay the tax liability demanded by the assessment as the PAYE regime in section 99 prescribed a mandatory and exclusive procedure for the Respondent to recover the demanded sums from the Appellant’s employer.The Tax Appeal Board dismissed the Appellant’s appeal, holding that the PAYE regime in section 99 is independent of the power of the Respondent to raise an assessment on the individual emolument earner under sections 83 or 89, and the Appellant remains liable for the balance of any unpaid taxes. The Court of Appeal dismissed the Appellant’s further appeal. The Appellant now appeals to the Board.
Date of issue
18 May 2023
Judgment details
Judgment date
21 November 2024
Neutral citation
[2024] UKPC 37
Judgment links
Appeal
Justices
Hearing dates
Start date
23 April 2024
End date
23 April 2024
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