II. Unrecognised States and Liability for Income Tax

Abstract

The object of this short note is to draw attention to a decision of the Special Commissioners of Inland Revenue (the Commissioners) which deals with the liability for income tax of officials of an unrecognised State.1 Section 321 of the Income and Corporation Taxes Act 1988 (the Taxes Act) provides exemption from liability for income tax for foreign consuls in the United Kingdom and for “an official agent in the United Kingdom for any foreign state, not being … a Commonwealth citizen”. An “official agent” is a person, other than a consul, “who is employed on the staff of any consulate, official department or agency of a foreign state”.