The Kljun (2012) Case: The Concept of Economic Employer under the United Kingdom-Yugoslavia Income Tax Treaty (1981)

Abstract

The author reviews the UK First-tier Tribunal (FTT) decision in Kljun (2012), in which the FTT used the guidance in the Commentary on the OECD Model regarding the meaning of "employer" in interpreting "person for whose benefit the relevant dependent personal services are exercised" in the United Kingdom-Yugoslavia Income Tax Treaty (1981). In the judge's view, "employer" applies to the person who has rights on the work produced and bears the relative responsibility and risks rather than to the person who may be considered to be the employer based on formal contractual relationships. For this purpose, the tribunal judge adopted the guidance on "international hiring-out of labour" in the Commentary on Article 15 of the OECD Model.