ABC Ltd (The Company) is a UK based Specialist Company, carrying out business
by supplying services and skills to, agents, managers and companies world wide.
DEF Inc USA (The Agent) is completely independent of "The Company" and is a US based Agent and Production Company working in the US with national and International Companies throughout the world.
, economic, legal or otherwise exists between "The Company" and "The Agent", and both parties operate independently except when. "The Company" accepts to work on business commissioned by or for The Agent.
A Director of "The Company" is one of several employees and contracted individuals who provide their skills and services on behalf of "The Company" wherever the the contract requires.
How, where and when the US Tax Resident Director receives any, re-embursement/dividend etc has yet to be decided.
"The Company" signs contracts, invoices for work carried out, pays all the bills and negotiates every contract with or through "The Agent"
"The Agent" requests "The Company" to carry out various creative activities for clients obtained by "The Agent". An employee of "The Company" is sent to the US to carry out the various activities. "The Company" pays all of the employees expenses, negotiates each contract offered by "The Agent" and provides all of the equipment required to carry out the duties. "The Company" then invoices "The Agent" and in some cases, other clients, for work carried out.
"The Company" also requires the employee to carry out various activities in the UK, France and elsewhere. It is however clear that the employee is and will continue to be, US Tax Resident as long as contracts continue to be forthcoming and he is required to reside in the US.
"The Company" has rented accommodation in the US and other places for use by employees and hired expertise etc involved in honoring the various contracts.
What is the tax position of all involved and who will be liable for Tax and where?
Will "The Company" be liable to pay tax in the UK or US. Will all funds, payments etc, received in the UK from the US, be treated as UK taxable income?
Will the Director, who is also an employee and is US tax resident, be liable to pay tax of any kind in the UK or US, other than tax on any salary he receives whilst in the US?