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This could leave thousands of small businesses in a state of limbo as they are unsure of the legal situation before having to complete their tax returns.
Last year, when the Arctic Systems case was before the Court of Appeal, the professional bodies argued for a decision prior to January 31, 2006 in order to provide guidance on the position. A decision, in favour of the small business, was provided just before the deadline. However, the Revenue announced its intention to appeal the verdict to the House of Lords.
In a repeat of last year's rush to deadline, it was hoped that the case would be heard before the filing date. But the Professional Contractors Group, one of the organisations supporting the Arctic case, has now announced that it will not take place this side of January 31, 2007.
Arctic Systems
The Arctic Systems, a small IT consultancy owned by husband and wife, Geoff and Diana Jones, has been closely followed by small businesses and their advisers.
The Revenue has argued that the dividends paid to Mrs Jones should be taxed as if her higher tax paying husband had received them. The case has been to the Special Commissioners and the High Court - both resulting in a victory for the Revenue, then to the Court of Appeal, which gave victory to Arctic Systems. And will now go to the House of Lords - in what is looking like a case to be heard next year.
Further information
Shout99 has followed this case closely and all developments relating to Section 660. You can read more about the background and the issues at stake in Shout99's Section 660 resource centre
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Susie Hughes © Shout99.com 2006
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