TaxAdministrationArctic Systems costs HMRC £500,000

Arctic Systems costs HMRC £500,000

Taxman facing enormous court costs and legal fees for a £7,000 tax bill

The futile three-year pursuit by
HM Revenue & Customs
of family business Artic Systems has cost the taxpayer more than half a million
pounds, according to estimates.

While the taxman claims it does not know how much the case has cost, the
Professional Contractors
Group
has estimated the figure to be in excess of £500,000, for a tax bill
that was just £7,000.

As well as its own legal fees, costs were also awarded against HMRC at a
hearing earlier this year.

John Brazier, MD of PCG, which supported Arctic couple Geoff and Diana Jones
throughout the case, said: ‘It beggars belief that this amount of money could
have been spent in pursuit of a £7,000 tax bill. We already know the human cost
in terms of the years of stress for Geoff and Diana Jones, and we now know the
true financial cost to the British taxpayer.’

Further reading:

Family
set-ups hit for £500m

The Arctic
Systems timeline

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