Arctic Systems S660 case taken to Court of Appeal

The Professional Contractors Group (PCG) has announced that it will support Geoff Jones of Arctic Systems in taking his landmark Section 660A case against HM Revenue and Customs to the Court of Appeal.

The case was originally heard by the Special Commissioners in June 2004 and appealed at the High Court in March this year. Mr Justice Park delivered his decision on 27 April, dismissing Jones's appeal.

The formal judgment, which has since been handed down, agrees with the views of Special Commissioner Dr Nuala Brice, who had asserted that Diana Jones's dividends were in fact income arising under an arrangement and that the exemption in Section 660A (6) should not apply. It also focuses on the issue of market rate salaries.

Announcing the decision to appeal, PCG chairman Simon Juden said, "We believe that this judgment undermines the self-assessment tax system by leaving a host of questions unanswered. It could affect hundreds of thousands of small family businesses who've shared the risk and hard work of running a business, expecting to share in the rewards.

"We are campaigning for clarity, consistency and common sense in regulation and legislation," Dr Juden said, "and are pleased to have the generous support of leading tax barrister James Kessler QC, who believes that family businesses are being put in an impossible situation."

"I would also like to extend my thanks to Malcolm Gammie QC, Anne Redston, Accountax, Berg Kaprow Lewis, FSB, JSA, PCG members and members of the public for supporting this appeal. We hope that others who share our concerns will show their support by donating to PCG's legal fund."