The accountant, who was not named in the decision by the special
commissioners, operated as a sole trader, flying ACCA tutors into Slovakia for a
day to tutor Slovakian Big Four trainees.
The tax case revolved around whether he was operating as a joint venture,
after joining forces with a rival training company. The accountant would make
money by providing tutors at a premium, and also by the economies of scale he
received by buying flights in bulk, then expensing them to clients.
He had teamed up with another company, but the relationship soured over time,
and he eventually left the business after accepting a £10,000 severance payment
and his share of the profits generated while the partnership was in place.
The appellant claimed these payments should be eligible for tax relief in the
UK because his partnership with the then rival business was a joint venture.
But the special commissioners ruled otherwise. ‘In my view, the appellant’s
input was that of being consulted rather than having an equal say in how the
operation was run,’ said special commissioner John Avery Jones.
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