1996

UK

Caglar and Others v Billingham (Inspector of Taxes) [1996] STC 150

The Income & Corporation Taxes Act 1988 provides exemption from liability for income tax for foreign consuls in the UK and for ‘an official agent in the UK for any foreign state’ The Revenue told the staff of the office of TRNC in London that they were liable to pay taxes. A certificate of the Foreign Office established that the TRNC is not a recognised state

The TRNC was the result of an illegal use of force by Turkey, consequently it didn’t satisfy the minimum criteria of statehood, and the Security Council had called upon the states not to recognise it. While Security Council resolution 541 (1983) and 550 (1984) were not legally binding, they ‘were persuasive authoritative expressions of the view that the TRNC was not a state’ However the claimants were commonwealth citizens and under English law they were entitled to immunity from income tax.