Revenue and Customs v Facilities and Maintenance Engineering Ltd.

Revenue and Customs v Facilities and Maintenance Engineering Ltd.

FAME did not satisfy the past compliance condition under s.565(3) because its failures to pay PAYE and NICs on time were frequent and substantial, not minor and technical; therefore, the Revenue was legally precluded from renewing the CIS certificate and the Commissioners' contrary finding was an error of law.

Parties
Appellant: HM Revenue and Customs; Respondent: Facilities and Maintenance Engineering Ltd
Jurisdiction
England and Wales
Judgment Date
31 March 2006
Procedural Posture
Appeal / High Court Judgment
Outcome
Appeal allowed
Legal Topics
Construction Industry Scheme, PAYE Compliance, Nics Compliance, Certificate Renewal, Statutory Interpretation
Tax Law Administrative Law Construction Industry Scheme PAYE Compliance Nics Compliance Certificate Renewal Statutory Interpretation

Case Brief

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Parties

HM Revenue and Customs

Appellant

Facilities and Maintenance Engineering Ltd

Respondent

Procedural Posture

Appeal / High Court Judgment

Legal Issues

  1. 1 Whether FAME satisfied the statutory conditions for renewal of a CIS certificate under s.565 of the Income and Corporation Taxes Act 1988
  2. 2 Whether failures to pay PAYE and NICs on time were 'minor and technical' within the meaning of s.565(4)
  3. 3 Whether lack of warning by the Revenue or compliance with other tax obligations affects entitlement to a CIS certificate

Ratio Decidendi

FAME did not satisfy the past compliance condition under s.565(3) because its failures to pay PAYE and NICs on time were frequent and substantial, not minor and technical; therefore, the Revenue was legally precluded from renewing the CIS certificate and the Commissioners' contrary finding was an error of law.

Court Disposition

Appeal allowed

Orders

  • Revenue's refusal to renew FAME's CIS certificate is upheld
  • FAME is not entitled to a CIS certificate renewal