Cable & Wireless: the tax consequences
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Article by David Kirk, chartered accountant and CTA specialising in the employment agency sector. Article by Simon Wilks and Ray McCann. This article appeared in the June 2006 issue of Tax Adviser.
Anyone whose business it is to read the details of court decisions will come across bad judgments from time to time, and hope that it is someone else's clients who will have to take the risk of getting them corrected in the higher courts.
It is not often, though, that a genuinely dreadful judgment comes out of the Court of Appeal. Looking at the mess that it was causing in employment agency relationships, however, two of their lordships' comments in Brook Street Bureau Ltd v Dacas in 1004 propel their judgments into this category. In essence, they invited tribunals to imply a contract of employment (other things being equal), not between a person and the agency, but between a person and the agency's client for whom the person is working.
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