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HMRC issued a further statement following its decision to appeal its defeat in the recent test case in the Court of Appeal. (See Arctic Appeal: Revenue fight on - Shout99, January 2006)
In the statement, the Revenue warned that the Court of Appeal decision cannot be regarded as final, although it acknowledges that the judgement does represent the law as it now stands.
Revenue statement
The Revenue statement said:
Jones v Garnett: Further advice
We have been asked to issue advice on how those affected by the Court of Appeal decision in Jones v Garnett (known as "Arctic Systems") given on 15 December 2005 should complete their self assessment returns.
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The Court of Appeal judgement represents the law as it now stands. It follows therefore that taxpayers whose circumstances are consistent with the situation in Jones v Garnett are entitled to self assess or, within the time limits allowed, amend a self assessment in accordance with that judgement. Clearly, each individual case is different and it is not easy to lay down a clear line which defines whether a case is consistent with Jones v Garnett. To that extent taxpayers will need to be guided by their advisers. If providing details using the ‘white space’ in a return is considered appropriate it would be helpful if the entry could be made at box 7.32 on the "Trusts etc" pages of the individual SA return.
Taxpayers who have already filed their tax returns on-line, but think they may be affected by the decision cannot use the on-line facility to amend their SA return. However, if a taxpayer has filed his or her return on-line and, in light of the judgement, wishes to make an amendment, he or she can write to us telling us how the return is to be amended. There is no need to re-submit a full paper return. Taxpayers have until 31st January 2007 to amend their 2004/05 return.
Open enquiries
Where there are open enquiries into similar cases our intention is to keep them open pending finality. We did not seek closure in our favour following the High Court judgement and it would be premature for that to happen now. A taxpayer who considers he or she is affected by this judgement may, of course, apply to the Commissioners for a direction requiring HMRC to issue a closure notice. In those circumstances it is our intention to oppose the application on the grounds that the possible appeal to the House of Lords constitutes reasonable grounds for not issuing a closure notice.
Section 660 information
For further information about Section 660 and the Arctic case, see Shout99's free news and information resource.
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Susie Hughes © Shout99.com 2006
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