6th October, 2000 - Judicial Review
Judicial Review
On Monday (October 9 2000) the PCG begins the first stage legal
process to overturn IR35 by seeking the permission of the High
Court in London to proceed with a judicial review.
PCG's case is that IR35 is contrary to EU law - and should
therefore be struck down - on several counts. First, it is 'illegal
state aid' as the Government is taxing small contractors more
harshly than their larger competitors; secondly, it is a breach
of the right of establishment as it discourages contractors
from trading in the UK; and thirdly, under the Human Rights
Act it is de facto confiscation of property contrary to the
European Convention on Human Rights.
This stage on Monday will not be concerned with the 'good'
or 'bad' of the measure. It is a technical hearing which will
decide if permission for a judicial review should be granted.
If the court decides there is an arguable case, a date - possibly
towards the end of the year or the beginning of 2001 - will
be set for a full hearing.
PCG's background briefing document on the judicial review is
available;
Here
Also, Chairman Gareth Williams' summary is under discussion
on the forum;
Here
PCG has hired top QC Gerald Barling, a specialist in EU law
with a track record of defeating the Government on tax issues.
PCG Chairman Gareth Williams said: "We are confident we
have a strong case against a measure that has been widely recognised
as unfair and unreasonable. The case does however depend on
some highly technical aspects of EU law, and we look to the
court to allow this to go forward to a full hearing."
PCG AGM & Conference
Details of the PCG's annual general meeting and conference have
been distributed to members. It will be held in Birmingham on
Saturday October 28. Anyone wishing to attend should complete
the booking form as soon as possible;
Here
PCG at British Business 2000, Olympia, 19-21 October
If you wish to volunteer to man the stand at PCG's first exhibition
please link;
Here
Breakfast Seminars
There are still some spaces left at the breakfast seminars.
We will be presenting to key clients and demonstrating the need
to make contract changes to show that the contractor is an independent
business. The first seminar takes place on October 12 in London.
This is an ideal opportunity to influence important clients
and we encourage you to invite your contacts. See
Here
Conservative Party Conference
The Conservative Party flagged up that IR35 is still on its
political agenda at the Party Conference in Bournemouth last
week. Shadow spokesman on DTI, Alan Duncan was reported by the
BBC as committing to repeal the measure which he described as
a 'pernicious tax'. Then leader of the Opposition, William Hague
referred to his encounter with a 'young software consultant'
who was leaving the country because of IR35.
"Wanting to pay less tax isn't greedy. The young software
consultant that I met who shook his head as he talked of his
plans to move abroad because of the stealth taxes he now faces
wasn't being greedy.
He just can't understand how this country can ever succeed
if he's being taxed out of work in an era when business can
go anywhere in the world and we need innovators so badly.�
Here
and Here
.....and finally
This week PCG member, Richard Marriott, joined the growing band
of contractors who are moving abroad due to IR35. As Richard
was standing on Birmingham railway station surrounded by his
luggage on the first leg of the journey to New Jersey, he spotted
Treasury Minister Andrew Smith MP. Mr Smith and his colleagues
are of the opinion that no-one is really leaving the country,
so Richard walked up to him with his luggage, showed him the
luggage labels, and said: "I am a computer consultant and I
am catching a flight to the USA tomorrow morning to work - I
am leaving the country on account of IR35." Mr Smith replied:
"I'm sorry to hear that, I would prefer it if you stayed here
and built your business."
Susie Hughes
(Head of Executive Services)
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