UK Court Rules Boston Consulting Group Shares Taxed as Income

Payments for shares sold by executives at Boston Consulting Group’s arm in the UK are taxable as income, a UK court ruled Tuesday.

The Upper-Tier Tribunal ruled the payments received by managing directors and partners at BCG’s subsidiary in the UK on the “sale” of their “capital interests” were taxable as miscellaneous income because they didn’t actually constitute “interests in the capital” of the UK subsidiary for any of the relevant years.

It also found that BCG’s subsidiary had been careless in its introduction of the capital interests in 2011 and in their reintroduction in 2014.

Managing directors ...