Barnes (HMIT) v Hilton Main Construction

Barnes (HMIT) v Hilton Main Construction

The General Commissioners erred in law by applying a test of proportionality not permitted by the statutory scheme. Section 565 requires that failures to comply with tax obligations must be minor and technical and not give reason to doubt future compliance. Since the failures were not minor and technical, the certificate should not have been renewed. The statutory scheme is compliant with the Human Rights Act and proportionality is already inherent in its structure.

Parties
Claimant: Barnes (HMIT); Defendant: Hilton Main Construction
Jurisdiction
England and Wales
Judgment Date
15 April 2005
Procedural Posture
Appeal by Way of Case Stated / Judgment
Outcome
appeal allowed
Legal Topics
Construction Industry Scheme Certificates, Renewal of Tax Exemption Certificates, Proportionality, Compliance With Tax Obligations, Human Rights Act
Tax Law Administrative Law Human Rights Construction Industry Scheme Certificates Renewal of Tax Exemption Certificates Proportionality Compliance With Tax Obligations Human Rights Act

Case Brief

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Parties

Barnes (HMIT)

Claimant

Hilton Main Construction

Defendant

Procedural Posture

Appeal by Way of Case Stated / Judgment

Legal Issues

  1. 1 Whether late payment of tax obligations disqualifies a company from renewal of a construction industry scheme certificate under section 565 of the Income and Corporation Taxes Act 1988
  2. 2 Whether the General Commissioners were entitled to apply a test of proportionality in their decision
  3. 3 Whether refusal to renew a certificate infringes Convention rights under the Human Rights Act

Ratio Decidendi

The General Commissioners erred in law by applying a test of proportionality not permitted by the statutory scheme. Section 565 requires that failures to comply with tax obligations must be minor and technical and not give reason to doubt future compliance. Since the failures were not minor and technical, the certificate should not have been renewed. The statutory scheme is compliant with the Human Rights Act and proportionality is already inherent in its structure.

Court Disposition

appeal allowed

Orders

  • certificate quashed