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The total legal costs of the Arctic Systems ruling were more than half a million pounds, according to a new statement, which has also claimed that HMRC's activities are not being monitored correctly.
The Professional Contractors Group (PCG), a freelance trade body, estimated that the landmark court case (officially known as Jones v. Garnett) cost 'in excess of £500,000' — a figure that HMRC and the Treasury have been 'apparently unable' to offer.
The PCG said it was 'surprised' at this, given that the organisation had been in possession of the 'necessary information available' for some time.
However, the HMRC said they did not recognise the group's figures and added that the known legal and associated costs of the Arctic Systems case had been presented by ministers as £120,207.
The PCG's remarks came in reaction to comments by Exchequer Secretary Angela Eagle, who answered questions tabled by Mark Prisk MP in relation to the Arctic Systems case — which was eventually won by the IT contractor company.
Mr Prisk enquired how many cases being investigated by HMRC 'under the settlements legislation were stopped as a result of the House of Lords judgment'. He also wanted to know the cost of HMRC investigations under the settlements legislation in each of the past three years.
Ms Eagle replied to both queries: 'The information requested is not available'.
This, believed PCG, 'strongly' suggested that HMRC 'does not monitor what investigations it is undertaking, or how much they cost'.
The trade body went on question HMRC's motives in pursuing the Arctic Systems case, saying it 'was not simply a decision about the particular case. It was a strategic decision to pursue a particular interpretation of the law through the courts'.
