NIM59001 - NICs avoidance: sham: considering sham
Definition of sham
When investigating NICs avoidance arrangements, you may conclude that something is not as it is alleged to be. If this is the case, you may want to consider whether part or all of the arrangements are a sham. Sham describes the situation where legal appearance and reality do not coincide.
For relevant case law about sham see NIM59050.
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- (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
- (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
- (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
- (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
Outcome of a successful sham argument
If arrangements are a sham, then tax and NICs provisions will be applied to real and intended transaction(s).