PCG to argue IR35 is illegal under European law at Court of Appeal

The Professional Contractors Group is taking the Government to the Court of Appeal from December 4-6, 2001 to seek to prove that IR35, the controversial tax on small, knowledge-based businesses, is illegal under European law.

The Appeal, which has been funded by the membership of the PCG, will claim that IR35 contravenes European legislation on two counts - illegal state aid and a barrier to free movement - and therefore should be removed from the Statute Books.

The original judicial review was held in the High Court in March 2001; and on April 2, 2001, Mr Justice Burton found against the PCG on the points of law; but found in their favour on all findings of fact and was critical of the Inland Revenue's approach to the legislation.

PCG's Chairman, Jane Akshar, said: "The High Court found in PCG's favour on so many factual issues that we felt it was only a small step to prove that not only is this law unfair and uncompetitive - it is also illegal."

The PCG will be operating an office throughout the case in:

The Cheshire Cheese,

5 Little Essex Street,

London WC2 - close to the High Court from 9.30am to 6pm each day (December 4-6, 2001).

Counsel for PCG are Mr Gerald Barling QC and Miss Kelyn Bacon both of Brick Court Chambers. They are instructed by Tony Askham, head of litigation at Bond Pearce, Solicitors.

PCG will be posting a comprehensive background briefing about the case and regular statements on a dedicated site.

UKTECH will also be reporting from the scene with commentary from Anne Redston, author of the book: 'IR35: Personal Service Companies.'

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The Editor