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Larkstar Data IR35 case to be re-heard on High Court orders
Posted Feb 5, 2009
A controversial IR35 case involving Larkstar Data Limited will be re-heard by the General Commissioners following orders from the High Court.
The Professional Contractors Group (PCG) which is backing the case, made the announcement today.
The Larkstar Data case was originally heard by the General Commissioners. On that occasion, Alan Brill, the company's director successfully represented himself. Unusually, HMRC appealed the decision in the High Court.
Sir Donald Rattee decided that the case should be re-heard on the grounds that the General Commissioners misdirected themselves in law. Specifically, he found that they failed to consider authorities that the Revenue referred them to, and so did not take all arguments into account.
Sir Donald upheld only one of the HMRC's four grounds for appeal, but this was enough to ensure that the case had to be re-heard.
"This case shows how important it is to have expert advice from the earliest stage," commented PCG's managing director John Brazier. "Larkstar's owner Alan Brill did very well to win his case at the General Commissioners, but he now faces the prospect of having to go through it all again - only this time he will have the support of PCG's expert advisers."
"This case illustrates why PCG's advisers have historically always taken cases to the Special Commissioners rather than the Generals," added Mr Brazier.
"The Generals are a lay tribunal, which increases the chances of this kind of error compared to hearings before the Specials, who are professionally qualified. However, this system is set to be replaced by a new set of wholly professional tax tribunals on April 1st - it is not yet clear whether the re-hearing will be under the old or new system. Either way, it certainly seems fair to say that all is not lost in this case by any means."
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