|
Geoff and Diana Jones, of Arctic Systems, were investigated by the Revenue in 2004, and
asked to pay an extra £42,000 in tax due to the Settlements Legislation (Section 660a). This
amount was calculated by considering the higher rate tax avoided for the last 6 years by sharing dividends.
After much negotiation the Revenue subsequently reduced the bill to £6,000.
With the implications of this decision potentially affecting thousands of small busineses, Geoff and Diana, with help of the PCG contested
this bill in in September 2004, in front of Revenue special
commissioners.
Their appeal was lost, but not without controversy, since the two commissioners involved could not agree on a verdict.
They then decided to contest further and took the case to the High Court. The case verdict was delivered in April 2005. They lost.
|