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PCG Confident Of IR35 Appeal Decision
by Jason Gorringe, Tax-News.com, London

11 December 2001

The Professional Contractors Group (PCG) has claimed that it is feeling confident after last week's three-day hearing in the Court of Appeal.

Susie Hughes, spokeswoman for the PCG, said: 'The appeal concluded on a high note. We put forward a strong case with sound arguments that proved IR35 is contrary to European law.'

The PCG claims that the controversial IR35 tax on small, knowledge-based businesses is illegal under European law. The court case appeal follows the High Court dismissal of PCG's claims in March and April earlier this year that IR35 contravenes European legislation concerning illegal state aid and is a barrier to free movement.

At the time Mr Justice Burton found against the PCG on the points of law, but found in their favour on matters of fact and was critical of the Inland Revenue's approach to the legislation.

Although a date has not yet been set for the ruling, Ms Hughes said a judgement 'could come either before or after Christmas.' The PCG has pledged that if it loses the appeal it will take the case to the European Court of Justice in Luxembourg to fight the legislation.

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