Court Confirms The Employer Pays Evaded Tax, Not Employee
A recent case saw a FTSE100 company being ordered to compensate HMRC for lost tax revenues when it had to accept that a tax scheme had failed.
The employer had hoped that as it was the employees who had benefitted most from the arrangement, that it would be them that the court would instruct to cough up. Not so. Liability rested firmly with the employer.
So, if you are an employee and your employer suggests something a bit dodgy, it could well be they that carry the risk.
If you are the employer, you may be wise to avoid carrying such risk.