Tax authorities seek to take Arctic case to House of Lords
15 01 2006 United Kingdom
After the much acclaimed decision before Christmas by the Court of Appeal, HM Revenue and Customs has decided to get the judgement overturned by pursuing an appeal to the House of Lords.
In a unanimous judgement last December, the Court of Appeal gave its decision that the Inland Revenue had been wrong in pursuing Geoff and Diana Jones, a husband and wife who owned Arctic Systems Limited. The original claim was for £42,000 in back tax.
The court also turned down the tax authority’s request for automatic leave to appeal its judgement. And accountancy professionals believed the government would be deterred from an appeal because of the legal costs involved.
But in a new turn to this contentious case, HM Revenue and Customs has now announced that it will petition the House of Lords direct.
The Inland Revenue had refused to treat this as a test case, but their costs in pursuing it will be met by tax payers.
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