HM Inspector of Taxes v G-Con Ltd

HM Inspector of Taxes v G-Con Ltd

The repeated and significant late payments of PAYE/NIC by G-Con Limited during the qualifying period could not reasonably be characterised as 'minor and technical' failures under section 565(4) ICTA 1988. The General Commissioners' decision to the contrary was unreasonable and based on irrelevant considerations, such as compliance in other tax matters and the absence of a warning. The High Court judge was correct to overturn their decision, and the appeal is dismissed.

Parties
Claimant/respondent: Paul Arnold (HM Inspector of Taxes); Defendant/appellant: G-Con Limited
Jurisdiction
England and Wales
Judgment Date
12 May 2006
Procedural Posture
Civil Appeal / Appeal From High Court (chancery Division) to Court of Appeal
Outcome
Appeal dismissed
Legal Topics
Construction Industry Scheme (cis) Certificates, Statutory Interpretation, PAYE and National Insurance Compliance, Judicial Review of Administrative Decisions
Tax Law Administrative Law Construction Industry Scheme (cis) Certificates Statutory Interpretation PAYE and National Insurance Compliance Judicial Review of Administrative Decisions

Case Brief

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Parties

Paul Arnold (HM Inspector of Taxes)

Claimant/respondent

G-Con Limited

Defendant/appellant

Procedural Posture

Civil Appeal / Appeal From High Court (chancery Division) to Court of Appeal

Legal Issues

  1. 1 Whether repeated late payments of PAYE/NIC by G-Con Limited were 'minor and technical' failures under section 565(4) ICTA 1988
  2. 2 Whether the General Commissioners' finding that such failures were minor and technical was reasonable
  3. 3 Whether overall tax compliance record is relevant to the 'minor and technical' test

Ratio Decidendi

The repeated and significant late payments of PAYE/NIC by G-Con Limited during the qualifying period could not reasonably be characterised as 'minor and technical' failures under section 565(4) ICTA 1988. The General Commissioners' decision to the contrary was unreasonable and based on irrelevant considerations, such as compliance in other tax matters and the absence of a warning. The High Court judge was correct to overturn their decision, and the appeal is dismissed.

Court Disposition

Appeal dismissed

Orders

  • The appeal by G-Con Limited is dismissed.