Dividends to directors other than Mr and Mrs Lloyd
36.Dividends paid to directors other than Mr and Mrs Lloyd were, on one view, similar to wages paid to salaried staff. But I think there is a difference. I cannot assume that these directors were being rewarded according to the going market rate for what they did. That the salaried staff were being paid the market rate was not challenged. Design & Display now asks me to assume the same in relation to these remunerations. 37.I do not believe that I can just take it for granted that remunerations paid to directors, even to those who do not own the business, accord with market forces in the same way as do, say, the salaries of office staff or warehousemen. There was no evidence about this. The evidential burden rested on Design & Display and therefore I do not allow the deduction of the dividends paid to the relevant directors.
- Introduction
- The relevant principles governing the discount of overheads
- Outstanding issues
- Wages and salaries
- NICs and hired and recharged labour
- Directors’ NICs
- Dividends to directors other than Mr and Mrs Lloyd
- Net profit/loss on the infringing business
- Costs excluding the appeal
- Costs of the Appeal
- Permission to appeal