Source: All England Reporter
Publisher Citation: [2001] All ER (D) 356 (Dec)
Neutral Citation: [2001] EWCA Civ 1945
Court: Court of Appeal, Civil Division
Judge:

Auld, Robert Walker and Dyson LJJ

Representation Gerald Barling QC and Kelyn Bacon (instructed by Bond Pearce) for the applicants.
  Richard Plender QC and Stephen Morris (instructed by the Solicitor of Inland Revenue) for the commissioners.
Judgment Dates: 21 December 2001

Catchwords

European community - State aid - Tax - Service companies - Measures to counter tax avoidance in area of personal service provision - Whether negative state aid - Whether legislation unlawful hindrance to freedom of movement of workers, freedom of establishment and freedom to provide services - s 60, Sch 12 - Welfare Reform Pensions Act 1999, ss 75,76 - Social Security Contributions (Intermediaries) Regulations 2000 - EC Treaty, arts 39, 43, 49, 87.

The Case

Provisions to counter tax and national insurance avoidance in the area of personal service provision, in particular the hiring of individuals through their own service companies so that they could exploit the fiscal advantages offered by a corporate structure, enacted in s60 of and Sch 12 to the ss75 and 76 of the Welfare Reform Pensions Act 1999, and the Social Security Contributions (Intermediaries) Regulations 2000, did not constitute either an unnotified state aid contrary to arts87 and 88 of the EC Treaty, or an unlawful hindrance to free movement of workers, freedom of establishment and freedom to provide services, contrary to arts39, 43 and 49 of the Treaty,

Practice Areas

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