A decision on the landmark case to determine the tax position of thousands of
husband-and-wife companies under the ruling Section 660A ‘could be made before
Christmas’, a source close to the ruling has said.
Simon Juden, chairman of the Professional Contractors Group that is backing
Arctic Systems, told Accountancy Age that a decision on the test case
could be handed down before the end of the year as opposed to six to eight
weeks’ time as was previously expected.
The long-running case, which began on Tuesday and ended just after lunchtime
today, is between Arctic Systems, an IT consultancy owned by Geoff and Diana
Jones and HM Revenue & Customs.
The case focuses on the tax regulators’ objection to the way the couple used
their salaries and dividend payments to reduce their joint tax bill. Both sides
have pre-submitted skeleton arguments to the three law lords who will judge
Juden said that it was ‘impossible to say’ which way the case would go but
that both parties had ‘successfully put over their points of view’ to three of
the ‘highest judges in the land’.
Malcolm Gammie QC delivered the Jones’s arguments, while Rupert Baldry gave
evidence for the Revenue. Sir Andrew Morritt, chancellor of the High Court and
one of the most prominent judges in the UK, and the two other law lords ruled
over the case.
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