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Budget Note 66 (BN66) is the mechanism by which the UK Government introduced clause 55 of the Finance Bill 2008, which would later become Section 58 of the UK Finance Act 2008. This specifically targeted tax avoidance schemes that made use of offshore trusts and double taxation treaties to reduce the tax paid by the scheme's users. These schemes were heavily marketed to the freelance community after the introduction of intermediaries legislation known as IR35, as they appeared to offer more certainty concerning tax liabilities than would be the case if running a limited company. In introducing S58 the Government retrospectively changed the law so that not only could these schemes not operate in future but they were effectively made unlawful from the day they were first introduced. == Origins of BN66 == BN66 has its origins in the result of ''Padmore vs IRC'' (''Padmore v IRC (1987) STC 36 affirmed by the Court of Appeal (1989) STC 493''). This case challenged the decision of an Inland Revenue Special Commissioner that a UK resident member of an offshore partnership, in this case based in Jersey, should be liable for UK income tax on earnings received from the partnership. The challenge was based on the premise that under the provisions of a double taxation agreement between the UK and Jersey, the UK taxpayer should be exempt from UK income tax. The Commissioners' decision was based on the opinion that as the tax payer was neither resident, nor did they carry out business in Jersey, they should not be eligible for relief under dual taxation agreements and were thus liable for full UK income tax on earnings from the partnership. The judge in the case upheld the appeal on the basis that for the purposes of the arrangement under the double taxation agreement, a partnership was clearly a "body of persons" in the ordinary sense of the words. This partnership was resident in Jersey, since it was managed and controlled there, and its profits were the industrial or commercial profits of a Jersey enterprise exempt from UK tax. Thus the shares of those profits attributable to UK resident partners were also exempt. This decision was later upheld in the Court of Appeal. As a result of this the government at the time introduced legislation in the Finance Act (No. 2) 1987 to close this loophole retrospectively, with the exception of Mr Padmore. This meant that UK resident members of foreign partnerships could no longer benefit from double taxation treaties in relation to the profits from those partnerships. 抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』 ■ウィキペディアで「BN66」の詳細全文を読む スポンサード リンク
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