PCG ready for judicial review challenge to IR35 legality
The Professional Contractors Group is 'fully prepared' ahead of next week's (March 13-15) Judicial Review of the Government's controversial tax legislation, IR35.
The case, funded by the PCG's members, will demonstrate that IR35 contravenes European legislation on three counts and therefore should be removed from the Statute Books.
The three counts are that:
- IR35 constitutes a prohibited state aid within the meaning of the EC Treaty and, as it has not been notified to and approved by the Commission, it may not be lawfully implemented by the UK Government;
- IR35 infringes articles of the EC Treaty by creating unjustified obstacles to: the free movement of workers, the right of establishment and the freedom to provide services within the Community;
- The PCG maintains that the IR35 legislation is in breach of the general principles of law and Human Rights provisions.
Gareth Williams, PCG Chairman said, "This Government had the perfect opportunity to repeal the legislation in the recent budget, instead, it chose to completely ignore IR35 and the many issues surrounding it and, as a consequence, we will be continuing our court proceedings against them on March 13th.
"Every contractor, agent and client across the UK, as well as the many professionals from the knowledge-based sector who have already left the UK fearing IR35 would ruin their livelihoods, will be watching the progress of the hearing every step of the way. The outcome is set to either pave the way for a climate of innovation and success using the vast potential the UK has to offer or it could seriously damage its development, sending abroad pioneering businesses and some of the finest technical minds in the world."
The PCG have also set up a 'Media/Operations Centre' for journalists and PCG members above the 'The Cheshire Cheese', 5 Little Essex Street, opposite the High Court, which will be open for enquiries and information from 9.30am to 6pm each day.
Additional information and a comprehensive background briefing about IR35 and the Judicial Review can be accessed on the PCG's website. They will also be posting up-to-the-minute updates on a dedicated news site throughout the duration of the hearing.
The Judicial Review is taking place after the Inland Revenue were defeated in their attempt to prevent the case being heard when they opposed the permission hearing in October 2001.
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Richard Powell