At last, it has been announced that the
Arctic Systems case will be heard in the
House of Lords from 5 to 7 June 2007. The
case, and the subsequent uncertainty, has
now been running for more than two years
and it is to be hoped that some sort of finality
to this issue can be obtained before the
end of 2007.
Just in case you need a reminder, the case
concerned a company owned by a husband and
wife, Mr and Mrs Jones, and hinged on whether
dividends paid by the company to Mrs Jones
(who was not a higher rate taxpayer) should
be shown on her husband self assessment return
and taxed as his income at a higher rate
of tax.
HMRC won the original case heard by the
Special Commissioners. The taxpayer subsequently
appealed to the High Court, and HMRC also
won this hearing. However, HMRC lost in the
Court of Appeal. HMRC’s petition to
the House of Lords for permission to appeal
was granted and the appeal will be heard
from 5 June 2007.
Internet Link:
HMRC
statement
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