Court blocks Aberdeen AM bonus tax avoidance scheme

Aberdeen paid senior employees and directors over £31m free of income tax and National Insurance Contributions between 2000 and 2003 using an Employee Benefit Trust (EBT). The Scottish Court of Session last week backed HM Revenue and Customs' (HMRC) argument that Pay As You Earn (PAYE) and National Insurance Contributions (NICs) should be paid on the bonuses, which were converted into shares under the complex scheme. The PAYE and NICs at stake in the case totalled £7m. This is the latest in a series of court rulings against businesses that have tried to avoid PAYE and NICs using sc...