A gift of $2m from a former shareholder to an ex-employee of a timeshare property company after the sale of the company should not be taxed as earnings from the individual's employment, a tribunal has ruled.
The tribunal decided that the appellant, Colin Collins, had not been negligent in failing to report the payment on his tax return or seek tax advice.
In the case (Colin Collins versus the commissioners for HMRC, TC02088), Collins, a former managing director at a timeshare company, Resort Condominiums International (RCI), was given a personal cheque for $2m from his previous employer, Christel DeHaan, four years after he had resigned from his role with the RCI and after Mrs DeHaan had sold RCI.
About Nick Huber
I’m a specialist business journalist and have a particular interest in tax and technology.